The Council on 15 March 2011 adopted a Regulation ((EU) No 282/2011) laying down new implementing measures for the VAT Directive (2006/112/EC).

The Regulation, which recasts Regulation (EC) No 1777/2005, clarifies certain aspects of the VAT Directive with the objective of ensuring a more uniform application of VAT rules within the EU. It is directly applicable from 1 July 2011 in all EU Member States.

This Regulation includes new measures linked to the VAT Package, giving guidance in particular in determining

  • what is the status of the customer,
  • whether he acquires services for business use and
  • where he is located,

as this will in most cases determine the place of taxation and thus the rate of VAT to be applied. Its basis is in guidelines agreed by the VAT Committee after consultations with Member States undertaken by the Commission.

In all, it provides for:

  • implementing measures for Directive 2008/8/EC as regards the place of supply of services;
  • adaptation of the provisions of Regulation (EC) No 1777/2005 to the VAT Directive after its recast in 2006;
  • implementing measures for other elements of the VAT Directive.

See also Taxation and Customs Uniuon DG web page.