VAT changes on electronic services in EU



From 1st January 2015, a new extension to a directive from the European Comission attests that VAT on telecommunications, radio and television broadcasting and electronic services supplied by a provider established within the Community to non-taxable persons also established within the Community, will be charged in the Member State where the customer belongs.

This means that Lunacloud is required to comply with this directive and will change the way EU residents are charged VAT for its services.

Since the amount of the VAT is applied over your monthly consumption, from 1st January, 2015 this amount will appear on your monthly invoice, according to the current VAT rate in your country.

Practical example for a Lunacloud customer resident in country with 20% VAT:

  • Before January 1, 2015, to a total resource consumption of 50€ will be added € 11.50 VAT at a rate of 23%. The total amount invoiced is € 61.50
  • After January 1, 2015, to the same total resource consumption will be added € 10 VAT at a rate of 20%). The total amount invoiced will be € 60

If you are not resident in the EU, these changes won’t apply to you.

If you have any further questions about this change, please contact us.