What Is VAT On Digital Services?

VAT (value added tax) is a tax that is added on top to of price of goods and services in European Union. Even if you as a seller are from outside European Union you have to add VAT in case that you sell digital services to EU end customers.

You are responsible to collect it, report to tax authorities in 28 EU states and pay it to them.

You can choose to charge it to the buyer and raise the price or have the same prices for everyone and absorb it yourself.

Read more