European VAT rules applied by Press Customizr
VAT Rules for digital product as of January 2015
From 1 January 2015, telecommunications, broadcasting and electronic services will always be taxed in the country where the customer belongs* – regardless of whether the customer is a business or consumer – regardless of whether the supplier based in the EU or outside
* For a business (taxable person) = either the country where it is registered or the country where it has fixed premises receiving the service.
* For a consumer (non-taxable person) = the country where they are registered, have their permanent address or usually live.
Sources :
- Buying electronically supplied services online if the seller is established inside the EU
- http://ec.europa.eu/taxation_customs/vies/faq.html?locale=en#item_3
- EU VAT Rules
- What is VIES (VAT Information Exchange System) on-the-web?
Use Cases
| Business in another EU country | No VAT charged. Customer must account for the tax (reverse-charge mechanism). |
| Consumer in another EU country | Must charge VAT in the EU country where the customer belongs (not where the business is based).Example A Polish customer downloading an App on his mobile phone from a Finnish supplier. The Finnish company must charge the customer Polish VAT. MOSS available |
| Business or consumer outside the EU | No EU VAT charged.Example A Hungarian company sells an anti-virus program to be downloaded through its website to businesses or private individuals in Australia. NO VAT But if the service iseffectively used & enjoyed in an EU country, that country can decide to levy VAT (option for Member States). |