When we talk about “electronically supplied services” we mean:
• Website supply, web hosting, distance programme and equipment maintenance.
• Software supply and upgrades.
• Supply of distance teaching.
• Supply of film, games and music.
• Supply of artistic, cultural, political, scientific and sporting as well as entertainment broadcasts and events.
• Supply of images, text and information and making databases available.
There is a more detailed definition of “electronically supplied services” in Article 7 of Council Implementing Regulation of 15th March 2011 (282/2011/EU).
If a United States software company supplies software upgrades to private clients in twenty eight E.U. member states, does that company have to register in every one of those states?
The “Special Scheme” is optional and enables a non E.U. supplier making supplies of electronically supplied services to private, non-taxable individuals within the E.U. choose one E.U. state in which to register and pay VAT in respect of the supplies it makes within and throughout the E.U.
For example, a U.S. business/company supplies web hosting services to private consumers in Ireland, the UK and Germany. The U.S. business can opt to register for the “Special Scheme” in Ireland which means:
• it charges Irish VAT to its Irish customers.
• it charges UK VAT to its UK customers and
• it charges German VAT to its German customers
• it registers in Ireland using ROS (Revenue Online System).
• it prepares and files a single quarterly VAT Return and pays all the relevant VAT to the Irish VAT authorities.
• The Irish VAT Revenue then distributes the UK VAT to the UK Revenue Authorities and the German VAT to the German Tax Authorities.
The U.S. I.T. business/company is eligible to use this scheme if it is not established in the E.U. and if it is not registered or required to be registered for VAT in any other E.U. member state.