As of 1 January 2025, the European Union (EU) has implemented new value-added tax (VAT) regulations regarding virtual events and online educational content.
The new EU VAT directive has significantly impacted the taxation of e-services, shifting the tax obligation to where the recipient is located rather than where the provider operates. This change, aimed at addressing VAT compliance issues across the EU, has created a significant challenge for associations offering online education, as education is typically exonerated from VAT in many EU countries. However, without specific rulings in each member state, associations must now navigate a complex and impractical system to prove their educational services should be exempt.
We have had a few months to adjust to the changes and observe how other companies and associations are handling this new situation. Jocelyne Mülli, Managing Director of professional conference organiser K.I.T. Group, emphasised the company’s commitment to compliance and adaptability, stating, “K.I.T. Group has done our homework. Of course, we hope the EU recognises the implementation challenge and makes an exception for online educational content. Regardless, K.I.T. Group has instantly adapted to current needs, and our in-house registration tool now complies with the new EU VAT rules. Keeping up with changing rule systems is just another way we go the extra mile to do better for our associations.”
Valérie Zecca, Finance Director of the European Respiratory Society (ERS), raised a key issue impacting non-profit educational providers. “Under the EU VAT Directive, educational services are generally exempt from VAT when provided by public bodies or recognised educational organisations. However, since January 2025, the place of supply for B2C (business-to-consumer) e-services is now determined based on the consumer’s location rather than the supplier’s. This means that VAT must be charged at the rate applicable in the consumer’s country. As a result, we now face the obligation to charge VAT on CME (Continuing Medical Education) services provided online, in accordance with the rules of each member state where the participants are based.”
“To avoid this taxation”, Zecca says, “we would need to obtain rulings from 27 different EU countries to prove our status as an educational organisation — each requiring separate legal interpretations, compliance mechanisms, and complex administrative procedures — representing not only a significant administrative challenge but also considerable financial strain for non-profit organisations like ours. This situation requires clarification at the EU level. Although discussions are currently underway to bring this issue to the attention of the European Commission, resolving it is expected to be a complex and lengthy process.”
Joelle Verluyten, Executive Director at the European AIDS Clinical Society (EACS), shared how her organisation approached this challenge. “Our Governing Board ultimately decides our strategy, but we provide recommendations based on discussions with our partners. When we first learned about the new EU regulation, we thought the most significant burden would be on PCOs. Then, we realised the administrative complexity that would fall on our accountants and the need to restructure our registration system. Given the short timeline and the complexity of obtaining an OSS (one-stop-shop) VAT number, we decided to streamline our approach and focus on in-person events with an online feature rather than separate online registrations.”
EACS’s decision was supported by benchmarking research conducted by K.I.T. Group and discussions with other associations. “Practically none of the associations I spoke with had an online-only registration model,” Verluyten explained. “A single registration model, prioritising in-person attendance with online features, simplifies operations for our participants, sponsors, and organisers.”
Many associations now face difficult risk management decisions: comply with the regulation, absorb VAT costs, merge online content with membership benefits, or discontinue online registration altogether. As this issue evolves, associations must carefully evaluate their classification of services, consult with tax advisors, and determine the best course of action to ensure compliance while maintaining accessibility to educational content. The need for clarification at the EU level remains urgent to prevent undue burdens on organisations dedicated to knowledge dissemination.
Actions for Association Partners
For organisations impacted by these VAT changes, staying ahead of compliance requirements is crucial. Here are key steps to consider:
Assess Services: Identify which offerings are subject to the new VAT rules.
OSS Registration: Consider registering for the One-Stop-Shop (OSS) to streamline VAT compliance across the European Union.
System Updates: Ensure billing and accounting systems can handle VAT rates based on the customer’s location.
Contract Review: Update contracts to reflect potential VAT changes and clarify responsibilities.
K.I.T. Group can support your association, regardless of the direction you choose to take.
