CheatSheet: EU VAT Rules for Digital Goods

From January 1st, 2015, telecommunications, broadcasting and electronic services are always taxed in the country where the customer belongs* â€“ regardless of whether the customer is a business or consumer – and regardless of whether the supplier is 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.

VAT Rules

EU VAT can get complex and tricky for SaaS businesses, such as cloud-computing software, online streaming platforms, online games, ISPs, websites, e-books and many others.

So we have created this CheatSheet to ease the setup for you and your business.

Below table summarizes how we apply VAT in the NetLicensing Shop, depending on transaction participants and their location.

Source: https://netlicensing.io/wiki/eu-vat-2015