Changed VAT rules for virtual events from 1 January 2025
May 2024 - The applicable VAT regime for virtual events - such as livestream training courses, online sports activities, online conferences,? - exist within the various EU member states, there is a lot of uncertainty.
Currently, if you provide services of a cultural, artistic, sporting, scientific or entertainment nature, they are deemed to take place where those services are materially performed. The consequence? Turnover 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, the 'VAT Rates Directive' will be transposed into Belgian law from 1 January 2025. 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 courses (pre-recorded) already qualify as electronically performed services and are therefore taxable in the country where the customer lives or is established.
B2B-context
For virtual events in a B2B context, from 1 January 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 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 that purchaser is established or where it has its domicile or usual residence. As a result, the sales tax of that country will apply. Is this country in the EU? Then you have to charge the turnover tax of this EU member state to the customer. You can declare this turnover tax through a One Stop Shop system.
