The 'VAT Package', which came into force on 1 January 2010, contains major changes to the rules governing the VAT treatment of services, and a new electronic procedure for claiming VAT incurred in other Member States.

The Commission on 17 December 2009 adopted a proposal recasting Council Regulation (EC) No 1777/2005 which includes a number of elements clarifying the application of the VAT Package, notably as regards the new place of supply rules for services. These elements are the outcome of in depth discussions with Member States in the VAT Committee feeding into their implementation of the VAT Package into national legislation.

Once adopted by the Council by unanimity, this regulation will give clear legal certainty for businesses and Member States alike. For further information see the proposal (COM/2009/672) and the new web page called 'Where to tax', which replaces the old 'VAT on services'.