a lot of surfing the net later:
"From 1 January 2010, new rules have been introduced to ensure that VAT on services will better accrue to the country of consumption [see Directive 2008/8/EC adopted by the EU Council of Ministers and the press release IP/08/208Press Enter or click to choose translations of the previous link ].
The place of taxation is determined by where the services are supplied. This depends not only on the nature of the service supplied but also on the status of the customer receiving the service. A distinction must be made between a taxable person acting as such (a business acting in its business capacity) and a non-taxable person (a private individual who is the final consumer).
The concept of a taxable person covers anyone who carries out an economic activity, even if that person is not identified for VAT purposes, but it also includes a non-taxable legal person identified for VAT purposes [Article 43 of the VAT Directive].
Only once the exact nature of the service and the status of the customer are known can the place where the services are supplied be correctly determined.
The supply of services between businesses (B2B services) is in principle taxed at the customer's place of establishment, while services supplied to private individuals (B2C services) are taxed at the supplier's establishment.
* B2B services [Article 44 of the VAT Directive].
Example 18: The place of supply of services supplied by a company in Salzburg to a business client in Vienna will be Vienna. As the supplier is established in Austria, he will charge Austrian VAT to his client.
Example 19: For accountancy services supplied by a Bulgarian company to a customer with his place of business in Austria, Austrian VAT must be charged. If the Bulgarian supplier is not established in Austria, the Austrian customer will account for VAT under the reverse charge mechanism.
Example 20: Finnish VAT must be charged (by the customer using the reverse charge procedure) where legal services are supplied by a Polish company to a customer whose place of business is in Sweden but provided to the customer's fixed establishment in Finland.
Example 21: Advertising services supplied by an Italian company to a public authority in Spain which, because of its intra-Community acquisitions of goods, is identified for VAT purposes, are taxed in Spain using the reverse charge mechanism.
* B2C services [Article 45 of the VAT Directive].
Example 22: For consultancy services provided by a supplier established in Lisbon to a private customer who resides in Denmark, Portuguese VAT must be charged.
Example 23: A supplier established in Greece will need to charge Greek VAT to a business customer established in Romania who acquires legal services to be used for his private purposes."
guess that sums it up...