Summary
In July 2003 the European Union (EU) started applying Value Added Tax (VAT) to sales by non EU based companies of electronically supplied services to EU based, non-business customers. U.S. companies that are covered by the rule change must collect and submit VAT to EU tax authorities. This report provides details on what constitutes an electronically supplied service; which U.S. companies are impacted by the rule change; what their compliance obligations are; and how they can fulfill them.