Important VAT changes in force:
Important VAT changes in force:
place of supply rules for events and adjustment of profit margin scheme for works of art, collectibles and antiques
It's official. A new law was published late last year which will introduce significant changes. Meanwhile, some administrative circulars were also published explaining the changes.
More specifically, these changes relate to the following aspects:
For B2B services consisting of access to an event that only takes place physically, the rule remains that the service is deemed to take place where the event actually takes place. However, if the participant's presence is exclusively virtual, this specific place of supply rule will no longer apply from now on. In that case, the service will be deemed to take place where the VAT-taxable customer has established the seat of his economic activity. For hybrid events (which are both virtual and can be attended), the supplier should adjust his invoicing according to the customer's choice.
Similarly, for B2C access services that can only be attended on-site, the main rule will continue to apply and the service will be located at the location of the event. However, if events are exclusively streamed or otherwise made available virtually, the place of supply will now be the domicile or usual residence of the non-taxable customer. For events that can be attended both physically and virtually, a detailed assessment should be made.
The new rules are in force since 31.12.2025. For transactions for which VAT became due between 01.01.2025 and the date of entry into force (31.12.2025), the administration applies a tolerance to the extent that the scheme used meets certain conditions.
For resellers of art objects, collectibles and antiques, there is an additional condition for using the special profit margin scheme. From the entry into force of the law of 19.12.2025, the relevant art objects, collectibles and antiquities that a reseller has purchased (whether as a domestic supply, import or intra-Community acquisition) and for which the reduced VAT rate was applied at that purchase, may no longer be sold under the profit margin scheme. Such sales will now fall under the ordinary VAT rules, with the reduced rate of 6% being calculated on the entire selling price and not just the profit margin. This means that goods acquired or imported at the reduced rate (6%) before entry into force but not yet sold will have to be sold under the normal VAT regime after that date. However, the possibility of applying the profit margin scheme will remain for goods to which no reduced rate has been applied.
Do you have any questions about these changes or would you like us to look at the impact on your specific situation? Our VAT experts are ready to support you:
- Adaptation of the place of supply rules for services consisting of providing access to events, whereby the location is now determined on the basis of physical or virtual participation (Circular 2026/C/16)
- Restriction of the special margin scheme for the resellers of works of art, collectibles and antiques (Circular 2026/C/14)
1. Access to an event – place of supply rules for virtual participation
For B2B services consisting of access to an event that only takes place physically, the rule remains that the service is deemed to take place where the event actually takes place. However, if the participant's presence is exclusively virtual, this specific place of supply rule will no longer apply from now on. In that case, the service will be deemed to take place where the VAT-taxable customer has established the seat of his economic activity. For hybrid events (which are both virtual and can be attended), the supplier should adjust his invoicing according to the customer's choice.
Similarly, for B2C access services that can only be attended on-site, the main rule will continue to apply and the service will be located at the location of the event. However, if events are exclusively streamed or otherwise made available virtually, the place of supply will now be the domicile or usual residence of the non-taxable customer. For events that can be attended both physically and virtually, a detailed assessment should be made.
The new rules are in force since 31.12.2025. For transactions for which VAT became due between 01.01.2025 and the date of entry into force (31.12.2025), the administration applies a tolerance to the extent that the scheme used meets certain conditions.
2. New conditions for the application of the profit margin scheme – works of art, collectibles and antiques
For resellers of art objects, collectibles and antiques, there is an additional condition for using the special profit margin scheme. From the entry into force of the law of 19.12.2025, the relevant art objects, collectibles and antiquities that a reseller has purchased (whether as a domestic supply, import or intra-Community acquisition) and for which the reduced VAT rate was applied at that purchase, may no longer be sold under the profit margin scheme. Such sales will now fall under the ordinary VAT rules, with the reduced rate of 6% being calculated on the entire selling price and not just the profit margin. This means that goods acquired or imported at the reduced rate (6%) before entry into force but not yet sold will have to be sold under the normal VAT regime after that date. However, the possibility of applying the profit margin scheme will remain for goods to which no reduced rate has been applied.
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Do you have any questions about these changes or would you like us to look at the impact on your specific situation? Our VAT experts are ready to support you: