Streaming media has changed the way media services are being delivered to customers. From brick and mortar stores with physical products to digital streaming of content being broadcasted directly to homes and personal devices worldwide. Supply and transaction chains are more difficult to track, making the VAT process hard to follow and stay compliant.
The Fourth Industrial Revolution has delivered a series of disruptions that have changed the way we consume media, being streaming technology the most important digital transformation. Due to the changes in the way media streaming services are delivered to customers, supply chains are more difficult to track in a world wide market, which in turn can make it challenging for companies to stay VAT Compliant.
The streaming revolutions started with the music industry that shifted from being delivered by physical means, to streaming service platforms like Spotify, Pandora or Apple music. This means that the customers shifted away from physical music ownership to continual music rental through subscription services.
The second streaming revolution belongs to video streaming. With the introduction of YouTube back in 2005, this industry has evolved to the point where every media company has launched (or is about to launch) their own OTT and VOD services. Companies such as Disney or Apple have introduced their own services to get a fair share of the market which is now dominated by Netflix.
The next and third streaming revolution will be video games, starting with Google’s Stadia game streaming service, which came to the market in November 2019 and Sony and Microsoft expected to follow the same path. Streaming video games and aaS business model will be of paramount importance for an industry that is expected to worth +$300 billion by 2025.
Global VAT Compliance has the knowledge and experience to ensure your company fully VAT compliant for streaming media services wherever you are delivering your content, experiences, or services.
We offer comprehensive coverage across the globe providing services in Europe, the Asia Pacific region, Middle East and South and North America. Global VAT Compliance is able to provide Fiscal Representation in countries where even for digital services this is required, such as Switzerland, Serbia and Albania.
GVC is up to date with all the new and ever changing regulations as so your company is complying with local tax requirements so you can focus on your business and expansion opportunities across the globe.
What to know more? Contact us and focus on your business expansion.