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Digital Services VAT Guide 2020

An international VAT Guide for digital businesses everywhere

Introduction to Digital Services VAT

The landscape of digital services (or e-services) VAT is constantly changing. While tax authorities around the world scramble to create legislation and processes to monitor VAT for these intangible supplies, companies are either unaware of the changes or simply can’t keep up. However, the need to understand these laws has never been more important. Addressing your international tax obligations early will help you avoid colossal payouts later on (à la Uber).

What is Digital Services VAT?

Digital services VAT refers to the treatment of global taxes owed on the international sale of digital/e- services (e.g. apps; games; video; software etc.). From tech startups to multinationals, many businesses are unaware of the VAT implications and responsibilities they have to register for VAT in most of the countries they sell into.

Why it’s so Important for your Business to Get a Handle on Digital Taxation Now

The consequences of a lack of knowledge in this area, or purposely avoiding these tax obligations, is the potential for penalties further down the line. For example, a business could grow to become a middleweight champion in its field only to be smacked down by retrospective tax penalties which are now a major blow to a company’s bottom line. Avoiding digital service VAT penalties early in your business growth is critical.

About this Guide to Digital Service VAT

This Digital Services VAT Guide will help your business navigate the complexities and changes happening within the digital taxation realm. In this guide we deal with the following:

  • Introduction to Digital Services VAT
  • A Short History on Digital Services VAT
  • How Europe Defines Digital Services VAT
  • Accounting for Digital Services VAT in the EU
  • Timeline: The Development of Digital Services VAT in the EU
  • Minimising VAT risks for the Digital Services Industry
  • Looking into the Future of Digital Services VAT
  • Country Digital Services VAT Guidelines

Vatglobal offers assistance in all aspects of VAT registration, filing and compliance and are specialists within the digital and e-commerce services area. Contact one of our consultants today for any international tax related needs.

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