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Good to know Changes in VAT: streaming services and cross-border trade

Changes in VAT: streaming services and cross-border trade

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​​​​​​​​​by Aleksandra Majnusz
19 August, 2024


The Ministry of Finance is working on a new VAT bill. They want to change the rules of charging access fees for streaming services and to make it easier for small businesses to deal across borders. 

The new regulations are expected to take effect on 1 January 2025. 


New streaming rules


The bill changes taxation of services in respect of admission to the following events:

  • ​cultural,
  • artistic,
  • sporting,
  • scientific,
  • educational,
  • entertainment,
  • or similar, such as fairs and exhibitions,

and ancillary services related to the admission where attendance at these events is virtual.

For taxable persons supplying such services to another taxable person, the bill changes the rules concerning the place of taxation. Instead of at the place where the events actually take place, the services will be taxed according to the general rules, i.e. where the service recipient resides. 

If the above services are provided to non-taxable persons, the place of supply will change from the place where the service is actually performed to the place of residence of the consumer. The taxable person will have to identify the place of residence of the final consumer. As for consumers from the EU, the taxable person will have to account for VAT in the country of residence of each consumer separately. Generally, such a taxable person should register for and pay VAT in each EU Member State concerned.


Exemption for small enterprises


Currently, small EU companies doing business abroad cannot enjoy VAT exemption applicable in a given country. Consequently, they must account for VAT from the first sale made there. In Poland, small businesses may enjoy VAT exemption on sales up to 200 thousand zloty (net of tax).

As of 1 January 2025, the smallest companies based in another EU Member State will benefit from VAT exemption according to the limit applicable in that state – in Poland this is 200 thousand zloty net of tax. However, taxable persons will have to comply with the EU-wide limit of 100 thousand euro.

The changes apply to small businesses operating across EU Member States.

According to the bill, taxable persons wishing to use the preferential treatment will have to submit to the head of the competent revenue office a so-called prior notification containing the company's details, information about the countries where they plan to use the preferential treatment, and the annual turnover in the relevant EU Member State for the previous and current year.

The procedure significantly simplifies the VAT rules by reducing the administrative burden on small businesses not established in the country where they conduct business.

If you want to know more about the latest regulatory changes or are looking for support in your VAT affairs – please contact us. We will be glad to answer any questions you may have in this regard.

We also invite you to participate in the series of training seminars "Trading in goods abroad – beyond taxes".

Get ready for the upcoming changes and gain practical knowledge and up-to-date information to help you effectively manage international trade processes in your company. Sign up for free training from one of our locations »

 

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Aleksandra Majnusz

Tax adviser (Poland)

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