Here you can get all the important information about VAT at Digistore24 GmbH. Don’t let the two synonymous terms “VAT” and “Mehrwertsteuer” confuse you – they essentially mean the same thing in Germany. In German tax law, “VAT” is the correct term because it comes from the “Umsatzsteuergesetz (UStG)”. However, in relation to sales to private customers, the term “Mehrwertsteuer” is more common; and from a European perspective, this term is correct as well because the “Mehrwertsteuersystemrichtlinie (MwStSystRL)” of the EU forms the legal basis of the German VAT law.
Note: VAT at the reseller Digistore24 Inc.
Please note that we need the tax information of Digistore24 users based in the European area. This only applies if you sell or promote products through the Digistore24 GmbH (German company of Digistore24). If you are exclusively a contract partner of Digistore24 Inc. and your company is based outside of Europe, we do not need your tax information. For further use cases, please refer to this table. IMPORTANT: Please always consult your local tax advisor as well.
Why you count as an entrepreneur
When you sell your own products through Digistore24 or promote products as an affiliate, you act as an entrepreneur. That is why Digistore24 can only make payouts to you as an entrepreneur, not as a private individual.
However, entrepreneurial does not automatically mean commercial. Whether you need to register a business (Gewerbe) depends on the type of your activity: liberal professions (freie Berufe) are exempt from business registration under § 6 GewO (German Trade Regulation Act). You can find more on this in the article Business registration requirement and small business regulation.
For VAT purposes, this makes no difference: commercial and self-employed professional activities both count as entrepreneurial. You therefore always need a tax registration (tax number or VAT ID) – regardless of whether you have registered a business.
Calculation of VAT for your company
Depending on where your company is based, you will receive your payouts as a gross or net amount:
Company based in Germany
If you have a German company and are subject to VAT, then we need proof of your VAT tax liability. To do this, simply submit your VAT ID to us. In this case, the payout is made as a gross amount. This means you will receive an additional 19% on your net revenue, which you then pay back to the tax office.
However, if you are a German small business owner, you will receive your payouts as a net amount because you are not required to pay VAT. In this case, we will need your tax number. These regulations apply both to vendors and affiliates.
Company based in other (EU) countries
In your case, the payout is always as a net amount. We will take care of paying the VAT to the tax office.
If your customer comes from Germany or the EU, we as a reseller must pay the VAT to the German tax office or to the tax office of the respective EU country. That’s why you get the net amount.
If your private customer comes from a non-EU country (i.e., not Germany or the EU), then the final price of their order is calculated in the same way as the gross prices of German or EU-based private customers. In this case, your net commission is higher accordingly.
If you specify business owners (gross or net) as your customer target group, then the final sales price for foreign business customers is 19% lower, provided you have set net prices in the product settings.
If you are paid in net amounts, you should not pay any VAT to your tax office, as Digistore24 has already taken care of this for you.
Calculation of VAT for your customers
Due to the reseller model, Digistore24 is the sales partner of consumers who buy your products from us. According to the VAT law, consumers pay VAT when purchasing your products. As a sales partner, Digistore24 receives the VAT and is obligated to pay it to the tax office immediately. This applies regardless of whether you are subject to VAT or not (e.g., because you are a small business owner).
What this means for you as a vendor or affiliate
Digistore24 deducts the respective VAT before paying out to vendors and affiliates. This calculates the net payout amount for the credit notes. Depending on the VAT regulation of the respective company, the gross or net credit note amount will be calculated based on the net amount and paid accordingly.
This is a significant advantage for you because Digistore24 pays the respective tax amounts to the tax offices of the buyer's country of origin, relieving you of much bureaucratic work. If we did not do this, you would have to deduct the percentage of the gross amount and transfer it to the local tax office depending on the buyer's country of origin in the EU. Moreover, you would have to do this for every customer. However, thanks to Digistore24, you don't have to worry about this.
Digistore24 participates in the reverse charge process for EU VAT.
Therefore, it is not the business owner providing the service, but the service recipient who is responsible for paying the VAT. A credit note from Digistore24 to you is essentially an invoice from you to Digistore24. This information is also printed on your payout receipts: “Pursuant to Section 3a (2) of the VAT Act, Digistore24 GmbH as the service recipient is liable for any VAT charged. (“reverse charge”)/VAT due to the recipient”.
Calculation of VAT by product type
Different VAT rates apply depending on the product type:
Digital products
If you sell a digital product, we will deduct the country-specific VAT depending on the buyer's country. Digistore24 will pay the VAT to the respective tax office.
Examples:
- If a German customer buys, 19% VAT is added to the purchase.
- If an Austrian customer buys, 20% VAT is added to the purchase.
- If a Swiss customer buys, 8.1% VAT is added to the purchase.
Special cases:
1. E-Books
E-books are sold through Digistore24 with 7% VAT.
2. Digital audiobooks
Digitally delivered audiobooks are sold through Digistore24 with 7% VAT.
Physical products
The VAT rate of the recipient country applies to physical products. In some cases, the reduced tax rate of the recipient country may apply (e.g., for books or food supplements).
Seminars/Services
According to the VAT regulation from 01.01.2015, the seminar country is considered the “place of supply” and not the buyer's country. If your seminar takes place in Germany and an Austrian customer participates, they should pay 19% VAT. If the seminar takes place in Austria, a German customer must pay 20% VAT.
Sales to companies
You can activate the net price option for each of your products. Then, EU companies outside of Germany can buy your products at net prices if they provide their correct address and VAT ID. Since Digistore24 GmbH is based in Germany, companies in Germany cannot buy at net prices.