Following its press release of 3 December 2007 (see Legal update, New VAT place of supply rules), the Council of the European Union has issued a revised press release (Press: 281 Nr: 16082/07, also dated 3 December 2007) on the political agreement reached on draft legislation aimed at ensuring that VAT on services accrues to the country where consumption occurs, and preventing distortions of competition between states with different VAT rates. The revised press release no longer appears at the same location online but it is not clear whether this is a system error or the revised press release, too, has been withdrawn.

The revised press release differs from the original by specifying that:

1. The new rules will generally require VAT on business-to-business supplies of services to be charged at the place where the customer is situated (rather than where the supplier is located, as is currently the case). (The original press release stated that this would be the rule for all supplies.)

2. For business-to-consumer supplies of services, the place of taxation will generally continue to be that where the supplier is established.

3. In certain cases, the general rules above will not apply. Instead, specific rules will impose VAT at the place of consumption. The cases concerned include restaurant services, transport hire, cultural, sporting, scientific and educational services, and business-to-consumer supplies of telecommunications, broadcasting and electronic services.

4. The proportion of VAT receipts collected through the one-stop scheme in the case of business-to-consumer supplies of telecommunications, broadcasting and electronic services will not be 20%, as specified in the original press release. Instead, the proportion will be 30% from 1 January 2015 until 31 December 2016, 15% from 1 January 2017 until 31 December 2018 and 0% from 1 January 2019.