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VAT on downloadable digital products

by gcdavis
3 replies
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I am setting up a site that sells downloadable digital maps Products Archive | Mountain High Maps PlusMountain High Maps Plus

When purchased from another EU member State I understand that I need to levy VAT on these sales except when the purchaser provides a valid VAT number in which case no VAT will be added. Is this correct?

FYI I am using the WooCommerce WP framework for the site along with a (flaky) plugin that is supposed to identify the location of the purchaser and then add the correct VAT for EU member States or no VAT for the rest. As you can imagine this is a difficult thing to test.

Any advice would be most welcome.

Graham
#digital #downloadable #products #vat
  • Profile picture of the author Igor Pauer
    When you are EU based, you charge any EU entity VAT according your residency country´s VAT.

    If entity from foreign country (inside EU) is VAT registered, you charge them 0% VAT (valid information if entity is VAT registered can be found in VIES registry - API is available).

    You charge no VAT for non-EU entities.

    When you meet the annual VAT threshold for any other EU country (€33K/year for most countries), you are required to register for VAT in that country and charge that country´s VAT rate for sale inside that country.

    There are some exceptions for above rules and SW sales in some countries.

    It is much better to contact senior accountant/advisor in your country - VAT in international sales is very complex task.
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