Blog Post

EU VAT on Digital Selling

From January 1st 2015 all companies any where in the world that sell Stacks of coins with the letters VAT isolated on white backgrounddigital services to a purchaser in one of the EU member states will be required to register with the tax authority of any one of the EU member states then collect and remit VAT to that tax authority.

So, as of January 1st 2015 all EU companies (like percussion-music.com) that sell digital goods online should comply with the following new rules:

  • if the company sells to any countries in the EU, they will have to charge VAT in the country of the buyer instead of the seller.
  • if the receiving party of the digital goods is a consumer, the company has to charge the VAT percentage from the country of the buyer
  • if the receiving party of the digital goods is a company (with a valid VAT number) a reverse charge mechanism is in order, in understandable English this means there is a 0 percent VAT charge.
  • if the receiving party of the digital goods is a company without a VAT number or has an incorrect VAT number, the VAT of the country of the buyer must be charged.
  • if the company sells digital goods to companies or consumers in their own country, local VAT needs to be charged.

The admin burden that these new rules bring is far too heavy for a small business like ours.

That’s why it is NOT possible for customers from EU-countries to order at percussion-music.com. We hope for your understanding in this matter. Hopefully the EU will reconsider these ridiculous rules!