EU: VAT changes on digital products

New EU rules now in place.

The new EU sales tax rules mean that VAT on e-books, apps and music downloads will now be paid in the country of purchase, rather than the country of sale.

The move aims to cut through a loophole to ensure that companies such as Amazon and Apple will no longer be able to route all their European sales through low VAT countries.

All companies which sell telecoms, broadcasting or digital services will be hit by the new rules.  The rule changes will particularly benefit countries with higher VAT rates – e.g. Germany, Italy and the UK.

Source: EUObserver.