{"id":2130,"date":"2015-03-02T13:21:55","date_gmt":"2015-03-02T21:21:55","guid":{"rendered":"http:\/\/webcentsmagazine.com\/?p=2130"},"modified":"2015-03-02T13:26:51","modified_gmt":"2015-03-02T21:26:51","slug":"how-the-eu-value-added-tax-affects-online-sellers","status":"publish","type":"post","link":"https:\/\/webcentsmagazine.com\/?p=2130","title":{"rendered":"How the EU Value-Added Tax Affects Online Sellers"},"content":{"rendered":"

The new EU Value-Added Tax (VAT) changes, effective January 1, 2015, have a major influence on online merchants selling digital goods. It\u2019s important for e-tailers to understand what these changes mean. Our team at Ecwid has put together the below to make it easy for merchants to accommodate the new policies.<\/p>\n

The New EU VAT Rule \u2014 What is it about?<\/span><\/h2>\n

Before we dive into what\u2019s new with EU VAT, let\u2019s start with the basics.<\/p>\n

VAT<\/h3>\n

The Value Added Tax, or VAT, in the European Union is a general, broadly based consumption tax assessed on the value added to goods and services. If your business is based in the EU or UK and you sell to other consumers within the EU, then you probably have a VAT ID and file your VAT return to the country where your business is registered. If your business is based anywhere outside of the EU or UK, then you may not have a VAT ID. If you fall into the latter category and sell digital goods (or plan to) to customers based in the EU, then the rule changes also apply to you (and we\u2019ll get into mechanics of registering in the sections below).<\/p>\n

The New EU VAT Rule<\/h3>\n

Now, a closer look at the new EU VAT rule on digital goods \u2014 according to the new rules, if consumers from EU countries purchase digital goods from your online store, they must pay the EU VAT rate based on the EU country where they are established regardless of from where you sell.<\/p>\n

More Details<\/h3>\n

Please see this page for more information about the EU VAT changes: Key Facts About The New EU VAT Rules<\/a><\/p>\n

How this Affects You<\/span><\/h2>\n

Conditions<\/h3>\n

Basically, you are affected by the new rules if the following are true:<\/p>\n

    \n
  1. You sell downloadable digital goods or services including eBooks, hosting services,e-courses, recorded training videos, music or audio downloads etc.
    \nSee also:     What counts as an digital good?<\/a><\/li>\n
  2. You sell to customers in EU countries (regardless of whether or not you sell from within an EU member state)<\/li>\n<\/ol>\n

    Requirements<\/h3>\n

    Here are the requirements to comply with the new rules:<\/p>\n