The European Council revised the EU-wide VAT directive (2022/542) on the venue for live virtual events.
The amendment confirms that from January 1, 2025, the delivery of a virtual live event is taxable in the country of the consumer purchasing online participation, which means that providers of virtual events will have to charge VAT to consumers locally in their own country. This will force such suppliers to register for VAT in each country or to use the non-EU OSS to account for VAT on this type of supply.
This change will have a significant impact on non-EU companies that deliver virtual events, as many non-EU countries have VAT laws (such as the UK) stipulating that such supplies are taxable where the event itself takes place. As a result, this can lead to double taxation as companies will have to charge VAT both in the country where the event takes place and in the EU country where their client lives.