VAT on digital products and online courses: VAT depends on the customer's country

If you sell online courses, ebooks, software or digital subscriptions to EU consumers, you do not apply Spanish VAT. You apply the VAT of the buyer's country.

Why?

Electronically supplied services (TBE services) to final consumers are located in the customer's country under the VAT place-of-supply rules (art. 70.One.4 of the VAT Act).

How do I manage this?

Through the OSS One-Stop Shop. You register once with the Spanish Tax Agency and from there you declare quarterly the VAT charged in each EU country, applying the right rate (e.g. 19% Germany, 20% France, 22% Italy).

From what amount is it mandatory?

From €10,000 a year in sales to consumers in other EU countries. Below that, you can apply Spanish VAT.

At EkonYou we handle the whole OSS for digital creators. Contact us.

Do you run an online store? Shopify Partner: VAT registration and filings in more than 50 countries, plus EPR for packaging, electrical equipment and batteries. Services for e-commerce →