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 : 

  1. Buying electronically supplied services online if the seller is established inside the EU
  3. EU VAT Rules
  4. 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).
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