What about VAT on sales ?
When you set a price for your content, we assumed the price you chose was THE one, i.e the price you always want to display to your customers (and therefore all charges included).
Nevertheless, since the 1st of January 2015, the new regulation on European VAT taxes digital products according to the rates in effect in the buyer’s country.
Thus, depending on where the buyer comes from, this tax will be included (or not). For example, for an offer price set at 2.50 € :
– for a sale in France (rate 20%) : your net income will be 2.08 €, with 0.42 € VAT
– for a sale in Sweden (rate of 25%) : your net income will be 2 €, with 0.50 € VAT
– for a sale outside Europe : there is no VAT. Your income will be 2.50 €
This has 2 consequences for you :
1 / You will have to pay VAT on each sale. We will provide you with a detail of each sale, with the country of origin of your buyers. For the tax return, don’t panic ! There is a single entity in each country that will be responsible for transferring VAT to the administrations of the concerned states . More information here : http://europa.eu/youreurope/business/vat-customs/moss-scheme/index_en.htm
2 / When creating your offer, set the price according to VAT. If you are interested in the European market, and would like to receive 2.5 € of net income on a transaction, you will have to raise your price slightly to 3 €.
For more information, please contact us at firstname.lastname@example.org