2022 EU changes

Avalara enhanced the AvaTax VAT Determination solution to support more complex calculation logic and content for the EU. These enhancements support the current EU VAT legislation for the following use cases:

Supply of cultural, artistic, sporting, scientific, educational, entertainment and similar services, ancillary transport services, and valuations of and work on movable property

The enhancements impact the sourcing of the following tax codes, as they will be considered sourced in the place where the events or activities actually take place in the EU:

OA020000, OA020100, OA020200, OA020500, OA020600, OA020700, OA026346, OA020300, OA020310, OA020400, OA020401, OA020402, OA020403, OA020800, OA020801, OA029338, OA029339, OA029340

Further, if a provided services relates to a supply of cultural, artistic, sporting, scientific, educational, entertainment and similar services, ancillary transport services, and valuations of and work on movable property, but a different tax code is used, the Company will need to pass in their request the “SupplyofService” parameter. The values to include in this parameter for these use cases include:

For B2C transactions = “AdmissionToEvents”
For B2B transactions = “EventsRelated”

The SupplyofService parameter can be passed at the Company or Transaction level:

If passed at the Company level, this will apply to all services provided by the company.
If passed at the Transaction level, this will only apply to the specific transaction for which the parameter is passed.