- Hybrid sales combine digital events with physical add-ons, impacting VAT compliance in the EU.
- Sellers must determine if the sale is a mixed supply (separate digital and physical items) or a composite supply (one main product with a supporting element).
- Mixed supplies are taxed separately, while composite supplies are taxed based on the main product.
- Digital events are taxed in the customer’s EU country and reported via OSS if B2C.
- Physical goods are taxed where shipped and may require local VAT registration or IOSS for low-value items.
- OSS may not suffice for hybrid sales; additional registrations might be needed.
- Example: A webinar with a printed workbook is a composite supply, taxed at the webinar rate, and can use OSS.
- Example: An online class with an ingredient kit may require separate VAT treatment for the kit.
Source: hellotax.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
