The latest amendments of the Law on VAT, and particularly of its Article 12 regulating the matter of relevant place of delivery of services, widened the elements that should be determined in more detail through bylaws. Therefore, the subject matter of the new rulebook is widened accordingly, in two directions:
- First, in addition to the determination of services that represent electronic services, the new rulebook also determines the services that represent telecommunication services; and
- Second, the new rulebook also covers the matter of determination of the location (registered seat/permanent establishment/residence) of the recipient of telecommunication and/or electronic services, being the relevant place of delivery of such services under the Law on VAT.
With respect to the matter of determination of the relevant location of the recipient of above indicated services, the new rulebook prescribes multiple sets and combinations of criteria, as well as the rules on how to apply these criteria, in order to resolve the issues related to determination of the specific location in practice, having in mind the specific nature of delivery of telecommunication and electronic services.