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VAT Provision

With such circumstances, in the year 2000, the Commission set, among the priorities of its new strategy in the field of VAT, full and detailed review of the rules governing the place of the provision of services. Directive 2008/8/EC, which forms part of the VAT package, is the culmination of the revising process, creating the death certificate of the origin criterion in the intra-Community VAT. New rules on the place of provision of international services Salvador Trinxet, at the seminar, noted that the new legislative structure of the VAT on services establishes a general rule on the place of provision which was followed a series of exceptions. There is a splitting of the new general rule, being different location rules depending on whether the service is provided to other taxable persons (the so-called B2B) or those who do not have such status (B2C). Alongside this general rule, various special rules relate, proving that some of them are applicable exclusively to taxable persons, others to non-taxable persons and several others to both categories. This provision relating to location of services for VAT purposes also refers to those people who develop both taxable and/or exempt economic activities as non-taxable. For the sake of simplification, such persons shall be regarded as taxable persons for the purposes of the rules relating to the place of provision of services, with respect to the services that are provided. Consequently, if a subject to perform both activities subject as no subject, is you paid a certain service, you will be considered taxable persons when determining the place of taxation of services purchased, even on the assumption that such a service is intended for the activity not subject. Similarly the legal persons which, without having the status of taxable person, are identified for the purposes of VAT, they will have such consideration for purposes of applying the rules on the place of provision of services.

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