Small change, big impact

The start of 2015 will bring the biggest single change to the European Union value-added-tax regime that telecom operators, broadcasters and others that provide e-services have seen in decades. The legislation is expected to have a profound impact on e-services providers and particularly on their pricing and commercial strategy.

As providers of these services take steps to adapt to the new legislation, the result will be either a sharp increase in the prices charged to many consumers or a cut in suppliers’ profit margins. Neither of which is a desirable outcome.