Thanks for bringing this up. From what I understand the company I work for will not have too many issues with collection (we are legally structured as an agent and don't sell digital goods) but it does mean that paying for Google Ads will involve paying an extra 20% up front which isn't great for cash flow management (though it will be reimbursed later).
I mean, for B2B services the place of supply was already the place where the customer belongs so your employer already reverse charges the VAT which means that VAT is reclaimed at the same time it's charged, effectively cancelling itself out. If I understand it correctly, this change will only affect B2C services.
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Thanks for bringing this up. From what I understand the company I work for will not have too many issues with collection (we are legally structured as an agent and don't sell digital goods) but it does mean that paying for Google Ads will involve paying an extra 20% up front which isn't great for cash flow management (though it will be reimbursed later).
I mean, for B2B services the place of supply was already the place where the customer belongs so your employer already reverse charges the VAT which means that VAT is reclaimed at the same time it's charged, effectively cancelling itself out. If I understand it correctly, this change will only affect B2C services.