So say you’re pricing an online subscription at €5 (VAT inclusive) in the EU. You’re breaking the law because you’re actually charging different prices for different countries with different VAT rates (from €4.35 to €3.94 for 15%-27% VAT)… ain’t the Single Market a gas?
Summaries of relevant law: https://europa.eu/youreurope/citizens/consumers/shopping/pricing-payments/indexamp_en.htm
Just to make things easier there are different local taxes in every US state, too.
VAT on digital services/MOSS: What services are covered?
Learn more about the MOSS scheme and if you need to register in an EU country you sell to. There are 2 schemes: Union & non-Union scheme.
@erm67 @aral and you have to distinguish between delivery of services to taxable entities (B2B) and services to consumers (B2C). For services to consumers you normally charge VAT according to the country where the company that offers the service is located. So no price difference and all is good (and simple).
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