European VAT on
digital products in 2015

We make it easy for you to comply with the new EU VAT laws

New EU VAT laws

On January 1, 2015, new VAT laws passed by the European Union go into effect that now require businesses to collect VAT even if not based in Europe.

Previously, businesses collected VAT according to the country they operate from. According to the new laws, VAT needs to be collected according to the country of origin of the customer.

What this means

If you are selling digital goods, and might have customers in a country that is a part of the EU, you need to collect VAT from those customers.

Each country has a separate VAT rate, and some additional complexity is added for business customers with a VAT exemption - you can read more about it on our blog.

Seamless VAT collection with Binpress

Fortunately, we take care of all of that for you. You can turn on VAT collection in your store's payent methods settings, and we'll do all the grunt work:

  • In the checkout screen, we detect the customer's location using his IP address (Geolocation).
  • Customers who are located in any of the EU countries, have VAT added to their order amount, according to their country of origin.
  • Customers can declare their business VAT ID, which we then take into account for a possible VAT exemption.
  • All the necessary information - location, VAT amount, business VAT ID - is recorded for easy reporting later.

Get started with Binpress

VAT collection is a small part of what we offer to digital creators. Create your free store today, and take advantage of a variety of digital fulfillment tools.