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.
- Buying electronically supplied services online if the seller is established inside the EU
- EU VAT Rules
- What is VIES (VAT Information Exchange System) on-the-web?
|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).