Irish Revenue have recently provided updated guidance on the VAT rules around where VAT is payable and how it can be paid for “eGaming” services supplied from 1 January 2015. The changes will affect businesses providing eGaming services to persons, other than businesses, i.e. Business to Consumer (B2C).
Such eGaming services were previously subject to the VAT rules where the business was established. However, from 1 January 2015 businesses will need to charge and account for VAT, if applicable, in the EU country where the customer resides/where the service is consumed.
While eGaming services are currently subject to Irish VAT at the standard rate (23%), such services may be VAT exempt supplies in other EU member states. Therefore, the supplier will have to consider whether the service being supplied is subject to VAT in the EU country where the customer resides/where the service is consumed.
The changes will not affect businesses supplying eServices on a Business to Business (B2B) basis.