New VAT Rules 2025: Virtual Events and Education
- 2 minute read
- Finance & Accounting
From January 1, 2025, new VAT rules for virtual education and virtual events will be introduced. Now, providers of virtual live streams and events for private individuals (B2C) must pay VAT in the countries where the customer is located, and B2B providers must account for reverse charges.
Hvem gælder de nye momsregler for?
For B2C providers of services to private individuals, the rules on VAT apply in the different countries where the customers are located. This means that you as a provider are obliged to collect and settle local VAT in the customers’ different home countries.
For B2B providers, the situation is different. Here, B2B sales of virtual access to such events and training will be covered by the main rule on reverse charge. This means that invoices must be issued without VAT on sales to customers in the EU. This is then reported as EU sales without VAT, and you as a provider must register and validate the customer’s VAT number.
VAT One Stop Shop as a solution
In reality, there are two ways to comply with the new VAT rules:
- You can register your company for VAT in each country where you have customers.
- You can register for the One Stop Shop VAT scheme.
In short, the One Stop Shop for VAT is a kind of supplement to the regular VAT scheme in the country where you primarily pay VAT. In Denmark, it is via the Danish Tax Agency.
With the VAT One Stop Shop, you make one total report, handle one payment, report in one language, and in one place.
Preparing for the new VAT rules
It is important that your order and invoicing systems are ready for the new rules. Therefore, make sure that your systems can:
- Record where your customers are located and have documentation for this
- Juggle the different VAT rates in the EU countries
- Create invoices that comply with the rules in each country
- Keep track of VAT numbers on customers
