VAT on “Free” Electronic Services?

Journal
Pfeiffer, S.
European Union
International VAT Monitor 2016 (Volume 27), No. 3
FormatPDF
EUR
40
| USD
45
(VAT excl.)

A multitude of electronic services are offered for free, i.e. without monetary consideration. In this article, the author examines whether electronic services are subject to VAT where the consideration consists of personal data provided by the user. The paper analyses issues connected to the taxation of such services and determines whether VAT should be levied.