Changes to the EU rules for VAT on virtual events

VAT services

From 1 January 2025 the EU has changed its VAT regulations concerning virtual events and live-streamed services. This change primarily affects business-to-consumer (B2C) transactions, altering the “place of supply” rules to ensure VAT is applied where the consumer resides, rather than where the supplier is based or where the event originates.

For B2C virtual events, such as online conferences, webinars, and live-streamed concerts, in the EU, the place of supply is now determined by the consumer’s location. This now means that suppliers must charge EU VAT at the rate applicable in the consumer’s member state.

Suppliers are now obliged to identify the customer’s location, apply the appropriate local VAT rate, and remit the collected VAT to the respective tax authorities. This may necessitate VAT registration in multiple EU jurisdictions.

To streamline compliance and avoid having multiple VAT registrations suppliers can instead use the One-Stop Shop (OSS) system, allowing them to report and pay VAT for all EU member states through a single registration and return.

Implications for UK Businesses

Although the United Kingdom is no longer part of the EU, UK businesses providing virtual events to EU consumers are impacted by these changes. They must now charge and remit VAT based on the consumer’s location within the EU. This may require UK businesses to register for VAT in each EU country where their consumers are located or to use the OSS system to simplify the process.

Currently in both the EU and the UK, if a supplier and customer are not based in the same country, the supplier is required to account for VAT in each country where it has customers.

These changes to the EU VAT rules may cause a double taxation issue, where both UK VAT and EU VAT is due on an event in the EU. Post-Brexit, HMRC would usually update the UK’s VAT rules to align with the EU’s as they change. HMRC are yet to publish any guidance bringing UK place of supply rules in line with the EU.

If you believe you are impacted by these changes and require assistance, please get in touch with a member of the VAT team using the website contact page below.

Economic Operations Registration and Identification number (EORI number)

What is an EORI number?

An Economic Operators Registration and Identification (EORI) number is a unique code used to track and register businesses and individuals involved in the import and export of goods within and outside the European Union (EU) and the United Kingdom (UK). It is issued by customs authorities and is essential for customs clearance, ensuring smooth trade operations.

Who should register for an EORI number

A business may need an EORI number if they move goods;

between Great Britain (England, Scotland and Wales) or the Isle of Man and any other country (including the EU)
between Great Britain and Northern Ireland
between Great Britain and the Channel Islands
between Northern Ireland and countries outside the EU

A business does not need an EORI number if they are moving goods that are both:

not controlled goods
for personal use only

If they are moving goods to or from Great Britain, they must get an EORI number that starts with ‘GB’.

If they are moving goods to or from Northern Ireland, they must get an EORI number that starts with ‘XI’. To get an XI EORI number a business must already have a GB EORI number.

The business needs to have an EORI number before starting activities covered by customs legislation, for example, before they start to import or export goods.

How to apply for an EORI number

Applying through Government gateway

A business can use the online registration service; to apply for the EORI number through their Government Gateway account. Please note, it is not possible for us to apply on their behalf through the agent portal.

The GB EORI number is given immediately unless HMRC needs to make any checks on the application. If they do, it can take up to 5 working days.

The business will need to provide standard company information during the application process, such as the registered address, the type of entity and the EORI start date.

If the business is VAT registered, the EORI number produced by HMRC will be GB followed by the VAT number with 000 added onto the end – for example, a business has VAT number 123 4567 89 their EORI will be GB123456789000.

If a business is not VAT registered it can still apply for an EORI number – this may be referred to as a ‘temporary’ or ‘dummy’ EORI number where the business is in the process of registering for VAT. Having a dummy EORI can still allow the business to move goods in advance of receiving that VAT registration (which may be delayed by HMRC’s internal processes).

If the business has been given the dummy EORI number GB987654321000 and subsequently becomes VAT registered the previous EORI will be cancelled and will need to be replaced with an EORI that reflects the new VAT number. The business will need to reapply for the EORI number through the online application mentioned above.

Applying on a VAT registration application

If the business is not VAT registered and is applying for a VAT registration, an EORI number can be requested within the VAT1 application form online. Please note, that separate correspondence is sent out by HMRC for the process of the EORI application.

You can check if an EORI number is valid on HMRC online; Check an EORI number – GOV.UK

If a business needs to cancel their EORI number, this can also be done online via their Government Gateway account.

If you or your clients have any queries on EORI registration, please contact the VAT team.

We always recommend that you seek advice from a suitably qualified adviser before taking any action. The information in this article only serves as a guide and no responsibility for loss occasioned by any person acting or refraining from action as a result of this material can be accepted by the authors or the firm.