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New guidelines for implementing a series of changes to EU value-added tax rules will take effect tomorrow, after EU member states approved a series of implementing regulations that include revisions ensuring VAT charged for business-to-business services will be paid in the country of consumption rather than the country where the supplier is located. The implementing regulations also include a number of measures designed to avoid possible double taxation because of divergent interpretation of the new rules. Some of these include guidelines for suppliers on establishing the location and tax status of the customer; this will determine the rate of VAT that must be paid.
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