Sell digital products - problem with VAT

30 0 1

Hello everyone,

I want to make shop with digital products but I have problem with VAT. I live in Europe and I want to make business in my country but I don't know how I can pay VAT for countries outside the European Union. In UE we have a MOSS system that provides VAT to each European Union country. I know that I need to contact each country individually and tell about tax and law. There are many countries in the world and I am not in a position to contact and talk with them about VAT.

Does anyone sell you digital products and can tell me how to solve the problem ?



Replies 2 (2)
Shopify Partner
145 1 54

Hi Tommax, 

This is Katy from Sufio. If you're selling digital goods to consumers (B2C) from other EU countries, you should charge the VAT rate of the customer's country.

The VAT rates in different EU countries vary (from 15% to 27%) so you will be charging VAT differently to customers from different EU countries. The same applies to overseas sales -- you will need to find out what tax rate applies in the country you're planning to sell your digital products to and set up your taxes accordingly. This VAT guide for EU Shopify stores might be helpful. 

Also, you will need to assign the correct tax rate to each country you're selling to. Here in this article, you'll find more info about how to set up EU taxes in your Shopify store

Hope this helps a bit. 

Have a great day:)

Katy @ Sufio, invoicing app for Shopify

Shopify Partner
332 11 40

Hi Tom,

Have you solved your problem with VAT rates yet? I'm bringing a solution for you, please check this article about how to disable the VAT rate for digital goods on Shopify

I hope you'll succeed in your online business.

I'm Jason Dao, Manager of Research & Development Department at Avada Ecommerce.