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Thread: Software sold to Europe, VAT Applies?

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    Default Software sold to Europe, VAT Applies?

    Hello,

    I'm planning on opening an eCommerce website in a niche market. The website only holds a digital inventory of license keys for certain software. We do not host the software itself.

    My question is this: If I am a U.S based seller, how does VAT apply to me when I sell the software to UK, France, or Germany customers? Is there anything I should know about?

    Regards,
    Ryan

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    VAT does not apply, because you do not have a physical presence in those countries, so you wouldn't pay their taxes.

    Sales tax MIGHT apply in your home state if you sell to a customer within your state (some states excempt digital downloads from state tax).
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    This PDF will have what you need to know about how EU VAT affects US-based sellers: http://2016.export.gov/europeanunion..._eu_089244.pdf
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