Dutch VAT on live performed digital services
Although digital services are in general subject to VAT, the Netherlands are troubled by the debate whether or not to levy VAT on services in science, education, culture or entertainment.
The debate concerns non-automated international services. An example of these live services are those for which the provider uses a webcam to reach his foreign customer. In case they are regarded as electronic services, the private customer has to pay VAT in his country of residence. If, on the other hand, the services fall under entertainment services, where to file VAT becomes subject to discussion.
Since the Dutch High Court has not made a final decision yet, you might be filing VAT in the wrong country. Moreover, you may even be filing VAT you aren’t charged with in the first place. Therefore, we advise you to inquire about the VAT on your particular service.
If need be, you can object to this unjustly levied tax. The following questions offer a guideline to determine whether or not such an objection is in order:
- What kind of services does your company provide?
- How are the services performed (chat, mail, recording, live…)?
- Where are the providers or performers of your service located?
- What is your client's location?
- Do you register your client's location when providing your service?
- Do you file VAT on your services in the Netherlands or abroad?
Please feel free to contact us in case you desire the assistance of DTS. We are happy to offer you our services.