Hello! Apologies for the delay in response, but I had to spend some time chasing down a precise answer for this. After consulting with our finance department at Epic HQ and internationally, this is what we’ve found:
We agree with you that our prices should only include an amount of output VAT for services to private individuals that are resident in the EU. Epic Games pays the VAT amount due to the local tax authorities in the EU country where our private customer resides. Our private customers therefore should not have any VAT liability in this respect. In this respect we emphasize that Epic Games is a Swiss based company that only provides electronic services from both a Swiss and EU VAT perspective and Epic Games therefore should be bound to Swiss VAT invoicing and VAT accounting rules.
We also agree with you that based on the EU VAT place of supply and VAT liability rules the VAT reverse charge mechanism should apply in business to business situations. Therefore our business customer should be required to account the VAT due on payments for our services in the EU country where it is registered for VAT. In this respect, however, nothing has changed as of 2015.