What are digital products?

Digital products encompass telecommunications, broadcasting, and electronically supplied services (ESS) or telecommunications, broadcasting, and electronic services (TBE), which involve the transfer or download of data rather than the physical shipment of products. Digital products, on the other hand, are items stored, delivered, and utilized in an electronic format, requiring minimal human intervention. Examples include software, digital audio, video, and ebook files, which customers typically receive through email, internet download, or website login.

Currently everything sold on BlurBay goes under the category of digital products.

Who should pay VAT?

According to the EU VAT rules on digital goods, a merchant must pay VAT, if customers from EU countries purchase digital goods from their online store. The VAT rate is based on the EU country where the buyer is located regardless of where the store is. The buyer location is distinguished by the IP address.

BlurBay acts as the merchant marketplace and collects taxes from the buyers. After collecting, BlurBay files taxes to each country’s tax department so the sellers on BlurBay would not have to get into the hassle of it.

However it is good to be aware that the price on BlurBay will change based on the buyer’s location.
So for example if you list a product with the price of 9.00€, then in Germany the total price would be 10.71€ as the VAT rate is 19%.
If the buyer is from France, then the total price would be 10.80€ as the VAT rate there is 20%.

What are the different VAT rates?

Here are all the different digital product VAT rates in Europe.

Jürgen Ukkivi

Jürgen is a tech entrepreneur with over 15 years of experience in the industry. Jürgen is passionate about tech, media, entertainment and enjoys helping readers by providing up to date blogs in his areas of expertise.