As of April the 1st 2017, new set of rules for determining place of supply of services has come into force. New rules were introduced in December 2016 with delayed application in order to prepare taxpayers for forthcoming change. Reason for amendments of determining place of supply rules lies in need to synchronize with legislation of the EU.
Until latest amendments, general rule for determining place of supply of services was set to be where provider of services had its registered seat. As exception to the general rule, certain services were considered to be rendered where the recipient of the service had its seat, or has permanent establishment for which services were being provided. Another exception to the general rule referred to services related to real estate, auxiliary services to transportation services and services in relation to education. For these services, place of supply is considered to be the place where services has actually been rendered.
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