VAT

Applying correct VAT

We ensure that the correct tax calculation is applied for every transaction.

The complexity of local and international sales tax laws is based on international legislation (VAT MOSS, local VAT, GST, sales tax...), type of buyer (end-consumer or business) and category of product (physical, e-books, digital goods).

How do I apply my VAT?

You will find a dropdown at to top of the screen with all current available countries and their tax values.
You can change your selection at any time.
Be sure to apply the correct tax value before payment, changing afterwards can be done only by the shopowner and will be charged.

What is VAT?

The Value Added Tax, or VAT, in the European Union is a general consumption tax assessed on the value added to goods and services by the purveyor. It applies to nearly all goods and services that are bought and sold for use or consumption in the EU. Sales of goods or services to customers living abroad are normally not subject to VAT.

What is VAT MOSS?

Since the beginning of 2015, the applicable tax for electronic services, telecommunications, broadcasting is always at the tax rate of the country of the buyer. The supplier’s location has no impact on the VAT collection, only the customer location does. This rule apply for International sales as well.

• For a business (UID-registered corporation) = Country of registration or the location of the received service.
• For a consumer (non-taxable person) = Country of registration, where they have their permanent address.

What are the EU VAT rules?

Registration

If you are a business in one of the EU state, it is a legal obligation to register for VAT in this country. Depending on what you sell, products or services, you may also have to register in EU state where you sell.

You have the possibility to register in each and every country you sell in depending on the products and services you are providing. Or you can register for VAT MOSS in the case you provide digital goods to different EU member state.

VAT collection

In case of a local sale (same EU country than the one your business is domiciled in), VAT has to be collected in either B2B and B2C sales.

If buyer is from another EU country, collecting VAT is not depending of the type of the product you sell, and the type of customer:

• For B2B sales, no VAT will be collected (reverse charge), if a valid VAT number exists. If not, the sale is considered as a B2C one.
• For B2C sales, the country VAT rate applies in case of standard goods but customer's local VAT rate must apply in case of digital goods.

No VAT applies if buyer is outside of the EU.

How is VAT MOSS handled?

The EU VAT MOSS rules applies only in case of digital goods sales.
Valid for example: products from sections Extension, Service, Hosting

Recognition of B2B and B2C

If you have a valid UID number, the transaction will automatically be considered as a B2B transaction.

The UID Number will be automatically verified by our system with the VIES service.

If this check is valid, or the case of a cross border sale, no VAT will be added.

If you have no UID-Number, or check was invalide, the transaction will automatically be considered as a B2C transaction and VAT will be added.

Note: to buy as B2B Customer, you have to register with your valid UID-Number, or if already done, login in into your account before purchase.

Data Storage

Selling digital goods requires to collect and store evidences to prove location your buyer at the moment of the purchase. Following data is collected and stored for a 10 year period in compliance with regulation.

• Address country code
• Address
• IP at the moment of purchase
• Result of the EU MOSS VIES check

EU compliant invoices

• Merchant name and address.
• Merchant’s UID number (if valid and given)
• Invoice date
• Invoice sequencing number
• Buyer’s name and address
• Each purchased product
• Applicable VAT
• Final amount (Gross)

See also Buy as Company