- Digital services are services provided electronically over the Internet or an automated electronic network with minimal human intervention
- Examples of digital services include software and cloud services, digital content, online platforms and media, and automated tools and services
- EU taxes digital services based on the customer’s location, not where the seller is established
- Small businesses with annual sales of digital services under €10,000 can charge VAT based on their own location instead of the customer’s location
- Marketplaces are responsible for VAT collection and remittance for e-commerce businesses using third-party platforms
- Services that involve substantial human intervention, even if delivered electronically, are not considered digital services for VAT purposes
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.
