Europe changes rules on VAT taxes for virtual events – what does this mean for UK businesses?

The European Court of Justice (ECJ) has changed the rules on VAT taxes for virtual events in Europe.

Previously, business to consumer (B2C) services for virtual events were taxed according to the location of the service provider.

However, new legislation requires VAT to be charged based on the consumer’s location. This legislation came into effect on 1 January 2025.

What does the change in VAT on virtual events means for UK SMEs

UK SMEs may face additional challenges as a result of these changes. These may include:

• Double taxation – If your business has customers across the UK and Europe, you may be required to pay both UK and EU tax.
• Complex administration – Identifying where customers are based and storing this information securely could increase costs.

What to do next

HM Revenue & Customs (HMRC) has yet to respond to the rule changes on VAT taxes for virtual events in the EU. However, there are actions SMEs can take to reduce the impact of these changes.

You can review where your customers are based and then register for VAT in each relevant country individually.

Alternatively, you can use the non-union One Stop Shop (OSS) system to register for VAT through one member state.

If you would like tailored advice on managing VAT for virtual events, please contact our team.