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VAT - 2010 VAT Package Readiness Services

In preparation for the new Value Added Tax (VAT) rules that will go in effect 2010 in the European Union, U.S. companies should immediately assess how the new rules might affect their business.

The primary changes that will occur with the 2010 VAT Package rules will be to levy VAT on services at the actual physical place where the customer is located. This change can result in U.S. companies receiving significantly greater VAT savings compared to previous years. However, many individual EU countries will require advance VAT registration before business transactions take place in order to receive any VAT refund or savings.

2010 VAT Package Overview
The 2010 VAT Package is a new European rules taking effect in 2010 which makes significant changes regarding the rules on place of supply of services to businesses (B2B) and consumers (B2C), regulations for cross-border VAT refunds, the administrative cooperation, and the exchange of information between EU Member States. These new rules will affect U.S. companies that sell or purchase services in Europe, and can result in tremendous savings in their business expenses over previous years. Individual EU countries are able to interpret and apply the new rules differently regarding how some services performed are treated from a VAT point of view in their respective countries.

The Netherlands, the United Kingdom, Sweden, and several other countries have publicly stated how the new 2010 VAT Package for services performed will be applied. Additional countries will be announcing their changes under the plan in the upcoming weeks and months. EuroVAT is actively working with its business and governmental contacts in all EU countries to receive and apply their respective rules as they become available.

Service Industries Most Benefited by European Union 2010 VAT Package:

• Computer Services
• Shipping
• Warranty Services
• Installation
• Maintenance
• Equipment Rental
• Entertainment
• Event Management & Trade Shows
• IT Consulting
• Outsourced Call Centers
• Clinical Research in Life Sciences
• Repair Services

EuroVAT will assist in assessing the 2010 VAT rules and with the VAT registration and management. This may ultimately save the company 15-25% of the cost of doing business in EU.