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New VAT Rules

for Virtual Events Starting January 1, 2025 (EU)

As more services go digital, VAT rules are being updated to reflect how virtual events are treated for tax purposes. Importantly, the EU has clarified where VAT must be charged for virtual events that are streamed live.

In this article:

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What’s changing?

Under EU Directive 2022/542, from January 1, 2025, virtual events won’t be taxed where the “event happens” (because there is no physical location) but instead based on the location of the person consuming the service.

 

How VAT Is Applied?

  1. Virtual Events for Consumers (B2C)
    If you sell tickets to individuals (non-business customers), VAT must be charged at the rate of the country where each attendee lives. In other words, the place of supply is based on the customer’s residence, not where the organiser is based.
  2. Virtual Events for Businesses (B2B)
    If you sell to another business, VAT is generally handled through the reverse charge mechanism in cross-border cases. That means the supplier does not charge VAT; the business customer reports the VAT themselves in their own VAT return.

Why This Matters?

These changes update how traditional live event VAT rules apply to online formats. They help align virtual events with general VAT place-of-supply principles, because live virtual interactions (like Q&A) no longer count as simple electronic services.

 

To comply, EU member states must update their national laws by the end of 2024 so the new rules are in place from January 1, 2025.

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