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Digital Goods and Services

Digital goods are intangible goods that exist in digital form. This includes digital media, such as e-books, downloadable music, internet radio, internet television and streaming media, fonts, logos, photos and graphics, digital subscriptions, online ads, and many more.

In January 2015 new rules on the taxation of cross-border supplies of digital services to EU-based consumers came into force.

The rules require the suppliers of services such as apps, games, software downloads, ebooks, music and video streaming to apply, collect, and remit the tax due for sales to EU-based consumers.

The tax to be collected is the value-added tax (VAT) rate based on the location of the consumer.

Since then, more and more countries have been amended their tax rules to ensure that foreign digital suppliers are liable for the collection and remittance of VAT/GST.

Updated 8 months ago

Digital Goods and Services

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