Value added tax for foreign electronic services

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From October 1, 2022, companies and entrepreneurs who issue services in electronic form from foreign suppliers will be obliged to pay VAT.

The Tax Inspectorate has indicated how this rule will work when calculating the advance payment.

If the payment (including VAT) services rendered in electronic form are transferred to the account of a foreign supplier before October 1, the buyer has no obligation to pay VAT.

The buyer will be able to deduct this VAT paid to a foreign company if electronic services are accounted for by the buyer after October 1, 2022.