Place of Supply Rules for Live Online Events in 2025
From 1 January 2025, the supply of entrance tickets to end consumers for live online events will be taxable where the customer resides.
From 1 January 2025, live online events will be taxable for VAT where the customer resides. This change seeks to align tax regulations with the digital transformation, ensuring taxation in the Member State where the service is enjoyed.
Main VAT Changes for Online Events
- New place of supply rule: According to Directive (EU) 2022/542, the sale of tickets for live online events will be taxable in the country where the customer is established, has a permanent domicile or usually resides. This applies to both B2C and B2B transactions.
- Scope: The regulation covers cultural, artistic, sporting, scientific, educational and recreational events, including fairs and exhibitions, when they are broadcast live on the internet.
Impact for companies organizing online events
- Companies organizing hybrid or fully digital events will have to adapt to this change before January 1, 2025. EU Member States have until that date to adapt their internal regulations.
- VAT compliance options: the sale of tickets for streaming events to end customers (B2C transactions) represents the greatest change and the need for adaptation. The new regulations imply that suppliers must charge VAT in each of their end customers’ countries. Most companies will foreseeably benefit from one-stop shop (OSS) regimes, which allow for simplified VAT management in multiple Member States. If they do not do so, they will have to register in each country where their attendees reside (B2C) to comply with tax obligations.
The new rules clarify a taxation assumption that was often a source of confusion and different interpretations.
The European Union's OSS regimes are a suitable option for the sale of tickets to live online events to end customers residing in multiple countries of the European Union.
How can Marosa help you?
The new regulations clearly establish the rules for place of supply of the services analyzed. However, new rules may cause doubts or even cases of double taxation when it comes to events organized outside the EU.
Our VAT specialists can provide specific advisory on how these rules will impact your business. Marosa can also assist with OSS registrations and VAT compliance in multiple countries, optimizing compliance and efficiency.