Last updated: October 2025

This guide explains how Value Added Tax (VAT) is applied to purchases made through Digistore24 in the EU, EEA and the UK through the implementation of national and European legislation as well as legislation in the UK.

The purpose of this article is to outline the VAT rates in EU/ EEA/ UK so that you, as a vendor, understand the VAT rate which may apply to the products you sell on Digistore24. 

Our goal is to help you understand how VAT works - whether you’re selling a digital product or a physical item, and what this means for customers both inside and outside the EU.

Digital VAT Rules

Since 2015, EU VAT regulations for digital products require that VAT be charged based on the buyer’s country of residence, not the seller’s. This ensures fair taxation across all EU member states.

What “B2C” means:

“B2C” stands for Business-to-Consumer, meaning a transaction between a business (the seller or vendor) and an individual customer. For B2C sales, VAT is automatically included in the total price you see at checkout.

How VAT Works on Digistore24 - Digital Products

When you purchase digital products (such as online courses, memberships, software, or e-books), Digistore24 automatically applies the correct VAT rate based on your billing country.

Digistore24 then remits this VAT to the relevant tax authority in compliance with EU digital VAT rules - ensuring a smooth, transparent experience for the customer.

How VAT Works on Digistore24 - Physical Products

For physical goods (such as supplements, printed books, or shipped products), VAT is determined by the destination country - the country where your order is delivered.
The applicable local VAT rate is included in the total price at checkout.

If the customer is ordering from or to a non-EU country, such as the United Kingdom, Norway, Iceland, or Switzerland, please note the following:

These countries have their own national VAT or sales-tax systems, which operate independently from EU rules.

Post-Brexit VAT Clarification - The United Kingdom

Since Brexit, the UK no longer follows the EU VAT Directive. However, certain EU VAT principles - including the 2015 digital VAT rules - have been transposed into UK law with adjustments to reflect the UK’s independent tax system.

This means:

• UK consumers purchasing digital products from Digistore24 are charged UK VAT according to UK regulations.
• The UK’s VAT system now operates separately from the EU, with its own reporting and compliance requirements.
• Cross-border sales between the UK and EU are treated as imports or exports, which may involve customs checks or additional handling.

2025 EU VAT Changes to the Place of Supply Rules and their impact on the UK

From 1 January 2025, the European Union is introducing updates to the VAT “place of supply” rules for digital services, education, and events. Under these new rules, VAT will be charged based on where the customer is located, not where the event or service is hosted.

Because the United Kingdom has not adopted these changes, it continues to apply its pre-2025 rule, where VAT on certain services (such as live events or in-person training) is calculated based on where the event physically takes place.

This difference creates a possible overlap:

• If a UK customer purchases access to a digital event or course hosted in the EU, the EU may apply VAT under its new buyer-location rule.
• Meanwhile, UK VAT could also be charged under its older event-location rule.

As a result, some UK customers may temporarily face double VAT treatment - paying VAT both in the EU and the UK - until UK legislation is updated to align more closely with the new EU approach. Digistore24 will closely follow any changes to UK VAT regulations and revise this information accordingly.

In simple terms:

After January 2025, EU countries will tax digital and event services based on where the customer lives, while the UK still taxes them based on where the event happens.
This mismatch may lead to VAT being charged twice on certain cross-border services until the systems are harmonized.

General Legal Disclaimer

This information is provided by Digistore24 for general informational purposes only and does not constitute legal or tax advice.
While we strive to ensure accuracy, VAT laws may change, and interpretations may vary across countries.
For guidance specific to your situation, please contact your local tax authority or a qualified tax advisor.