New technologies

Settlement of VAT on services provided electronically

Acquiring various types of services by electronic means has now become one of the more popular alternatives, as their use has become almost an integral part of everyone’s life. The sale of computer software, various types of services or books (e-books) involves however taxation and proper VAT settlement of these services, which often raises questions and doubts.

Services provided electronically are not a delivery of goods. Tax regulations in their scope are explained by the Law on tax on goods and services as well as EU regulations and directives. The nature of services of this kind is essentially automated, hence requires a minimum human participation, and their use is possible only with the use of modern information technology. Among the services that should be included when making VAT settlements in this area, you can mention, among others:

  • accessing and downloading software online (in particular, public procurement / accounting programs, antivirus programs) and updating them,
  • accessing and downloading images, photographs and other;
  • sale of books in digital form and other electronic publications;
  • subscription to newspapers and magazines published online.

It is worth bearing in mind that services of this type performed for non-taxable physical persons will be settled in the country of the service provider’s seat, while in the case of entrepreneurs – VAT must be paid in the country of the recipient’s residence. Taxation of electronic services with VAT requires a precise determination of the place of providing these services, as it is necessary to adjust the jurisdiction, i.e. the place where the tax must be paid for the provision of services.

Our experts at CGO Legal will help you fully clarify these issues. We will also take care of every aspect necessary for the proper VAT settlement of services provided electronically, therefore we encourage you to contact us.