The new B2C VAT regime in the EU will enable suppliers of telecoms, broadcasting and electronic services (e.g. download software and services over the Internet, smart phones or

other the distribution channels including via “Apps") to rationalize or consolidate existing European tax, distribution and operational structures and to eliminate complexity and drive further costs savings. In particular it will also provide the opportunity to combine European wide substance in a single location. It will enable businesses to establish the customer facing entity in the same EU country as their business substance without facing VAT leakage as is currently the case. It is particularly relevant to non-EU businesses looking to sell telecoms, broadcasting and electronic services to EU retail customers.