Blog | VAT to Europe changes Jan 2015

18th November 2014

If you export to Europe then you need to be aware of the VAT changes coming into effect on Jan 1 2015. vat to europe changes 2015

VAT to Europe changes

Currently if you sell digital goods and downloads online to an end user (member of the public, not VAT registered) you would charge them VAT as per the UK rate e.g. 20% on most goods.

As of 1 Jan 2015 this all changes.

As KPMG elaborate here, you need to calculate VAT by the destination country. This is going to result in:

a) more complex basket/invoice calculations
b) some changes to your price competitiveness (positive and negative)
c) more complex reporting for the VAT man

There are also circumstances where you would need to be registered for VAT in that destination country as well (sales thresholds), and where stockholding in that country may be a benefit. We’re developing a white paper to cover e-exporting in more depth and will let you know when its ready.

How we can help you

We already have a module that allows you to control VAT exemption by country (See Orders – Manage VAT), and are currently refining it to allow you to set the VAT rate for each nation. This will let you enter Hungary’s VAT rate as 27%, Austria’s as 20% and the lucky Luxembourg at 15%.

For a full rundown of current European tax rates, take a look at Don’t forget to cross reference with who is actually in the EU here as VAT to non-EU countries is different again.

VAT Moss Regulations

Adam Pritchard

Founder of this agency and Shopit, Adam has nearly 20 years of digital experience, from the days of getting 3M and Pioneer UK web-friendly, to leading project teams on development and marketing projects for the likes of Tesco, Royal College of Nursing and National Tyres. Secretary of junior football club Winton Wanderers, most of the weekend is spent coaching kids, or reading the Sunday papers with coffee and cake.