Value added tax (VAT): period of application of the VAT arrangements applicable to radio and television broadcasting services and certain electronically supplied services

PURPOSE: to amend Council Directive 2002/38/EC and extend the period of application for certain VAT arrangements.

LEGISLATIVE ACT: Council Directive 2006/138/EC amending Directive 2006/112/EC on the common system of value added tax as regards the period of application of the value added tax arrangements applicable to radio and television broadcasting services and certain electronically supplied services.

CONTENT: the Council adopted a directive amending Directive 2006/112/EC on the common system of value added tax by extending the period of application of VAT arrangements for radio and television broadcasting services and certain electronically supplied services until 31 December 2008. The Directive requires the levying of VAT on the provision of such services from third countries.

The extension is due to the fact that it has not yet been possible to adopt provisions on the place of supply of services and on a more general electronic mechanism. The legal situation and the facts which justified the previous extension until 31 December 2006 had not changed and to avoid a temporary gap in the VAT arrangements for radio and television broadcasting services and certain electronically supplied services, those arrangements will continue to apply until 31 December 2008.

ENTRY INTO FORCE: 29/12/2006.

TRANSPOSITION: 01/01/2007.

APPLICATION: 01/01/2007.