Changed VAT rules for virtual events from Jan. 1, 2025
The applicable VAT regime for virtual events – such as livestream training courses, online sports activities, online conferences,? – exists a great deal of uncertainty within the various EU member states.
Currently, if you perform services of a cultural, artistic, sporting, scientific or entertainment nature, they are deemed to take place where those services are materially performed. The consequence? Sales tax applies from the country where the events or activities actually take place. Here it does not matter whether your customer is an entrepreneur or an individual, and whether that customer attends an event or activity physically or virtually.
VAT rates directive transposed into Belgian law
For virtual cultural services, as of Jan. 1, 2025, the “VAT Rates Directive” will be transposed into Belgian law. As a result, these virtual services will be taxed in the country of residence or establishment of the customer. For physical participation, the rules do not change.
Mere on-demand training (pre-recorded) already qualifies as electronically rendered services and thus is taxable in the country where the customer resides or is established.
B2B context
For virtual events in a B2B context, from Jan. 1, 2025, services will be taxed in the country where the customer is established. Is the customer located in another EU member state than the service provider? Then the VAT will have to be transferred to the customer.
B2C context
If your purchaser of the cultural service is not an entrepreneur, then you are deemed to provide the cultural service where this purchaser is established or where he has his domicile or usual residence. As a result, the sales tax of that country applies. Is this country in the EU? Then you must charge the sales tax of this EU member state to the customer. You can declare this sales tax through a One Stop Shop system.