Changes to VAT rules for virtual events with effect from January 2025

The digital supply of livestream training courses, online sports events, online conferences, etc. is growing. However, there was uncertainty regarding the applicable VAT regime within the various EU Member States. From 1 January 2025, the 'VAT Rates Directive' will be transposed into Belgian law on this point, making these virtual events taxable in the country of residence or establishment of the customer.

Current VAT rules

To date, in both B2C and B2B contexts (if less than 7 calendar days),  virtual events are taxed where the events actually take place. However, this involves interactive services with a low degree of human intervention. Mere on-demand training courses (pre-recorded) already qualify as electronically performed services and are taxable in the country where the customer resides or is established. 

New scheme

B2C context

As for the new regime for virtual livestream services to private individuals, the service is deemed to take place where that customer is established. If the customer is located within the EU, the service is subject to the VAT rate of that country. However, the service provider does not have to register in each country, but can alternatively opt to remit foreign VAT via the One Stop Shop (OSS) registration in the country of establishment. Such OSS registration remains optional, allowing the service provider to proceed with local VAT registrations at any time.

B2B context

For virtual events in a B2B context, from 1 January 2025, the services will be taxed in the country where the customer is established. If the customer is established in another EU member state than the service provider, VAT will have to be shifted to the customer and the latter will have to account for the local VAT.

Contact

Do you have any questions on these new measures? Our VAT experts are available for further advice or assistance. Please email btw-tva@bdo.be for the attention of one of the members of the VAT team: