CJEU - Recent Developments in Value Added Tax 2024

1. Introduction

As the economy becomes increasingly digital, more events, training sessions, and conferences are being held virtually or in hybrid formats. This shift was further accelerated by the COVID-19 pandemic.

The 27 Member States agreed to clarify the VAT treatment of virtual events through Council Directive 2022/542 which took effect on 1 January 2025. The revised Article 53 of the EU VAT Directive 2006/112/EC will no longer apply to virtual events in B2B contexts. The update limits its scope strictly to in-person events, reflecting a shift in how the place of supply for admission to events is determined.

Under the new rules, „live” virtual events for both B2B and B2C services will follow the same place of supply criteria: the place where the recipient of the service is established.

What prompted this change? Was it necessary? And will it resolve the legal uncertainties that previously surrounded the treatment of virtual events?

This article examines the rationale behind the amendment while highlighting remaining ambiguities in Article 53 and related implementing provisions under Articles 32 and 33 - issues that still require legislative attention.

S. 1162. Background

A virtual event o...