PE information brief

The new rules of the so-called "VAT Package" contain substantial changes affecting the place of supply for cross-border services supplied to businesses/entrepreneurs and consumers. For Private Equity firms and their service providers, this means an extension of the “reverse charge rule” for cross-border services (e.g. management services) and a new obligation to report “European Sales Listing” services rendered to EU VAT registered recipients, where the recipient is liable to pay VAT in its country. Companies will be required to have knowledge of the specific rules that are applicable in the Member States of their counterparties. Companies will need to review their service flow to mitigate any additional VAT costs and to review their compliance and reporting obligations.

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