Skip to main content

New VAT legislation on digital services in the EU

By 06/01/2015Blog

From 1 January 2015 the European Union introduced new value added tax (VAT) rules on the supply of digital services in the EU. VAT on digital services will be paid in the consumer’s country, not the supplier’s country. It will be charged at the rate that applies in the consumer’s country.

Now let’s try to translate this for my webshop: from now on, I’m obligated to calculate the VAT rate on my digital patterns depending on the country you live. So when you are for example a Belgian citizen, you will pay 21% VAT on my products. In some other European countries I’ll have to apply a new tax rate: so when you live for example in Germany, France, Denmark,… (all countries with a different tax rate), you will see that the prices for my patterns have changed. Some of you will pay a little bit less, others a tad more. The sales prices in these countries are little bit awkward. That’s because they are automatically calculated based on the VAT rate of your country! When you live outside the EU, you will not see any changes.

When you have any question on this matter, please do not hesitate to contact me. I’m not a tax expert nor a big fan of this new rule, but I can probably help you to understand this new legislation! :)

NOTE/ the displayed prices in the shop are including VAT and are calculated based on your billing and IP address to comply with the new legislation. 

I added this little cartoon just because I would like to attract you attention to this sad little story. Sometimes it’s so hard as a small entrepreneur to comply with all these rules. Most of them are set up for big companies, but actually small businesses like mine would almost start looking to the options listed above. Technically this new legislation was a pain in the ass, but we did it! The shop has been adjusted and now let’s hope there are no extra rules to come in 2016! :)

Leave a Reply