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EU VAT immovable property

  • Feb 9, 2016 | Richard Asquith

EU VAT immovable property

The European Commission has published guidance on the new rules for the VAT treatment of services relating to immovable property. The new regime is due to come into force from 1 January 2017.

The changes have been passed by a VAT Implementation Regulation, give new guidance on the determining the place of supply of services. Generally, B2B services are taxable in the location of the customer. This ‘general rule’ is modified in certain situations, including immovable property, to a where the service is provided – the ‘special rule’. This includes immovable property since the location of the property is a fairer proxy for the place of consumption of the services and therefore the country where the tax is payable.

The new explanatory note provides detailed criteria and guidance on various types of services related to the immovable property.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.