www.pwc.com

Sophie Claessens (PwC)

15 October 2014

B2C 2015 Working Group77 Day Countdown

2015 & Financial Services

© PwC 2014

Background - The rise of digital financial services

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15 October 2014B2C 2015 Working Group

The Internet of Things

European consumers moving online

Retail banks digitising not only their processes but also their service offerings

© PwC 2014

The 2015 VAT changes

Electronic Services?

B2C?

Supplied in other

MS?

Taxable in that MS

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15 October 2014B2C 2015 Working Group

© PwC 2014

Definition of electronic services

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15 October 2014B2C 2015 Working Group

Electronic services are services which are delivered over the internet or an electronic network, the nature of which renders their supply essentially automated and involving minimal human intervention, and impossible to ensure in the absence of information technology. (Article 7(1) VAT Implementing Regulation No. 282/2011)

Lists of some specific supplies which are included or excluded from this definition.

They are however not comprehensive and are not intended to cover every circumstance.

If a particular service is not specifically included or excluded one must look to the general definition in order to decide if it is an e-service.

© PwC 2014

Inclusions and exclusions that could impact financial services providers

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15 October 2014B2C 2015 Working Group

Article 7 specifically includes as e-services:

services automatically generated from a computer via the Internet or an electronic network, in response to specific data input by the recipient;

online information generated automatically by software from specific data input by the customer, such as legal and financial data, (in particular such data as continually updated stock market data, in real time);

Article 7 specifically excludes from e-services:

services of professionals such as lawyers and financial consultants, who advise clients by e-mail.

© PwC 2014

What does this mean for business in the financial services sector?

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15 October 2014B2C 2015 Working Group

Financial Services providers which offer certain online services (such as operators offering online trading or investment platforms, electronic banking, etc.) may be impacted by the 2015 VAT changes.

Considerations for financial services operators:

Classification of some of your services as “electronic services”

B2C capacity of your customers (retail banking) and the measures needed to identify their location; and

Classification of your services as VAT exempt in those jurisdictions or whether VAT is due (and if so, which VAT rate applies).

Thank you!

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applicable and information available at that moment in time.

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Sophie Claessens

+32 (0) 473 91 05 67Sophie.claessens@be.pwc.com