As of January 1st 2015 all EU companies that sell digital goods online should comply with the following new rules:
– if the company sells to any countries in the EU, they will have to charge VAT in the country of the buyer instead of the seller.
– if the receiving party of the digital goods is a consumer, the company has to charge the VAT percentage from the country of the buyer
– if the receiving party of the digital goods is a company (with a valid VAT number) a reverse charge mechanism is in order, in understandable English this means there is a 0 percent VAT charge.
– if the receiving party of the digital goods is a company without a VAT number or has an incorrect VAT number, the VAT of the country of the buyer must be charged.
– if the company sells digital goods to companies or consumers in their own country, local VAT needs to be charged.