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Exceptions to general rules

However, in order to ensure that VAT receipts accrue to the Member State of consumption, several exceptions have been introduced:

Common provisions for B2B and B2C supply of services

  • Services connected with immovable property (architect, construction work, hotel accomodation, etc.)
  • Admission to cultural, artistic, sporting, scientific, educational, entertainment and similar events (e.g. fairs and exhibitions)
  • Passenger transport (bus, etc.)
  • Restaurant and catering services
  • Short-term hiring of means of transport (e.g. car rental for three days)

Provisions specific to B2C services

  • Long-term hiring of means of transport
  • Service provided by an intermediary
  • Services relating to cultural, artistic, sporting, scientific, educational, entertainment and similar activities
  • Transport of goods
  • Work on movable property
  • Intangible services (like advertising services, services of consultants and lawyersfinancial) to a non-EU customer
  • Electronic services

The expert's eye

To prevent double taxation, non-taxation or distortion of competition, Member States may decide to shift the place of supply of services, which are either inside or outside the EU to inside or outside their territory, when according to the effective use and enjoyment of the service this differs from the place of supply as determined by the general rules, those for hire of means of transport, or certain B2C services to a customer outside the EU.Each Member State is responsible for the implementation of the effective use and enjoyment rule. The use made of the rule must be verified with the Member State concerned.