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AvaTax VAT determination solution update October 1, 2022

Overview

The AvaTax VAT determination solution will be updated on October 1, 2022. This AvaTax enhancement will help our customers support complex sales and purchase transactions across the EU.

See below for the use cases for the current EU VAT legislation that these enhancements will support.

 

Resolution

The October 1, 2022 AvaTax VAT determination solution enhancements will support the current EU VAT legislation for the following use cases:

  • Supply of:

    • Cultural

    • Artistic

    • Sporting

    • Scientific

    • Educational

    • Entertainment and similar services

    • Ancillary transport services and valuations of and work on movable property. 

The enhancements will impact the sourcing of the following tax codes as they will be considered sourced in the place where the events or activities actually take place in the EU:

OA020000 OA020100 OA020200 OA020500 OA020600
OA020700 OA026346 OA020300 OA020310 OA020400
OA020400 OA020402 OA020403 OA020800 OA020801
OA029338 OA029339  OA029340    

If a service provided relates to a supply of cultural, artistic, sporting, scientific, educational, entertainment and similar services, ancillary transport services and valuations of and work on movable property but a different tax code is used, in passing their request, the company will need to have the parameter “SupplyofService”.

Here are the applicable values for this:

  • For B2C transactions = “AdmissionToEvents”

  • For B2B transactions = “EventsRelated”

 

Please note that the parameter can be passed at the Company or Transaction level:

  • If passed at the Company level, this will apply to all services provided by the company.

  • If passed at the Transaction level, this will only apply to the specific transaction for which the parameter is passed.