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From the 1st of January new rules for VAT will apply within the EU. The place of taxation is determined by where the goods are supplied. This not only depends on the nature of the goods supplied, but also on how the supply is made. For example if an Estonian manufacturer hiring a machine in Estonia from a German company decides to purchase the hired machine, the place of supply is Estonia rather than Germany and Estonian VAT must be paid. Slovakian VAT will be taxed on goods subsequently transported from Bratislava to a customer in Prague by the customer or by a transporter appointed by him. More examples of trade and VAT taxation you could see on the link in the end of this article.

With the beginning of the new year into force enter new rules for taxation of services with VAT. The place of taxation is determined by where the services are supplied. This depends not only on the nature of the service supplied but also on the status of the customer receiving the service. A distinction must be made between a taxable person acting as such (a business acting in its business capacity) and a non-taxable person (a private individual who is the final consumer).

To facilitate the recovery of VAT across the EU, from the 1st of January all applications for VAT requisition will be applied electronically. In this case the National Revenues Agency will serve as an intermediary because the application will be filed at the NRA and it will resend it to the relative EU member state. The deadline for this is 4 months unless there is new information requested which will make the deadline double - 8 months. The recovery of the VAT itself is supposed to take up to 10 days, the NRA says in a statement.

Details and examples for VAT application within the EU you could see here.