The new digital VAT in Europe for online stores

The new rule that affects digital VAT in E-Commerce is now operational. This new legislation will affect the prices that European consumers will pay when making purchases online. The new Directive called 2008/8/EC.

Until now, the rule said that the VAT rate that was applied was the same as that of the country where the seller had its tax headquarters.

The new standard establishes a different criterion: that of taxation in the country of consumption. This makes the applicable VAT the one in force in the country where the e-commerce customer resides.

Therefore sellers will have to take into account variations in the IVA produced in all the countries of the European Union, thus increasing bureaucratic procedures.

Thus, starting Thursday, Internet stores must reflect on their invoices the VAT rate that corresponds to the residence of the customer making the purchase.

In the end, this new regulation will lead to a general increase in prices for the final consumer.