New VAT rules for EU CustomersAnd how EU companies may get the VAT exemption
Starting from January 1st 2015 the company selling digital products in the EU, must charge VAT (sales tax) based on the country where the customer resides, rather than where the seller is based, regardless of whether or not the supplier is based in the EU.
How does the system work.
1. Registered customers.
Our store system apply the proper customer’s country VAT rate. So UK customers will be charged of 20% tax, german of 19%, french by 19.6 etc
2. New customers.
Our store system through your IP Address detect your country and add the proper tax rate. If you are connecting from a different country you will be asked to confirm manually that you are established, have your permanent address, or usually reside within your country.
VAT Exemption for EU based companies
EU based companies with a valid EU VAT ID will pay the net (without any tax) simply submitting their VAT ID in the purchase form.