20 February 2019 
Amanda Darley, Head of Operations and Engagement
In a case that could have implications for certain elements of university distance learning offerings, Deloitte reports on the recent Advocate General's opinion in Geelen as follows, and we await the decision of the CJEU to see if the Court follows the AG's opinion:
'The general rule that services to consumers are subject to VAT where the supplier is located has always been subject to exceptions. For example, cultural, artistic, and entertainment activities are taxed where performed.
In Geelen, AG Maciej Szpunar noted that this exception never envisaged modern technology. Mr Geelen (based in the Netherlands) engaged models in the Philippines to provide interactive “adult” webcam sessions to Dutch customers. In the AG’s Opinion, this was not the sort of activity for which the exception was intended. The normal rules on B2C services should apply, and Dutch VAT should be charged.
Even if the services were supplied where performed, AG Szpunar concludes that performance does not take place where the models are based, or where the consumer was located, but where Mr Geelen brought together all elements of the supply (i.e. in Netherlands).
Having established that this was a domestic supply, the AG does not comment on the level of human intervention required to affect the place of supply of other electronic services.'
Perhaps the last point noted, that apparently the AG did not comment on, would be of relevance to university distance learning. Note that whilst the request for a ruling is available in English, the AG's opinion itself does not appear to be (maybe the Court is saving on translation services in light of Brexit!).
