Digital sales, VAT & Paddle

Worth noting that tax is not just something folks within the main Eurozone should be paying on digital downloads by law. The Paddle change log mentions various other countries worldwide that are slowly adopting similar taxation for digital downloads, often rather cruelly dubbed “Netflix Tax”:

Including Russia, Iceland, Turkey, Belarus, Japan, Australia, India, South Africa and New Zealand, so far.

Countries outside the EU have differing rules on tax collection, thresholds and taxation rates for digital downloads you are selling to their citizens. So lumping all the responsibilities on Fastspring or Paddle has been a godsend for smaller developers like myself. We can focus on developing addons and leave the mountains of paperwork and expensive auditing to somebody else. I’ll sleep more easily, thanks.

I don’t think country-specific systems like VAT-MOSS can deal with sending tax back to non-EU countries like New Zealand? This was one of the factors that swayed me away from VAT-MOSS when I was considering all options in 2015.

1 Like

No, afaik VAT-MOSS is an E.U. only system.