Member update on evolving VAT requirements in the EU

There is a Value Added Tax change going on within the EU which potentially affects members in the UK, and across Europe and beyond. Originally scheduled for January 2021, as part of the change, countries across the EU were planning to phase out thresholds which had originally been in place to enable businesses to trade across borders without need to register for or pay VAT in other EU countries. Given the Covid-19 pandemic the EU postponed this change, but it now looks like it will go ahead in July 2021.

What it means for CIOL Members

The good news is that there are categories of ‘services’ not greatly affected by this VAT change and on the face of it, for translation and interpreting services nothing major will change. The big changes are mostly targeted at ‘products’ sold across EU borders or imported into the EU. There is however a category of ‘eServices’ which remains in scope and could include language training courses if they are delivered wholly online with no human input, as they can be considered in effect as ‘electronic products’. 

What should you do?

CIOL cannot give you financial advice, nor can we influence an EU wide change which has been many years in the making. We can alert you to it however. Our advice would be to speak to your accountant if you think the EU change from July 2021 and in particular the category of ‘eServices’ might affect you.