VAT has been added to my order. Why is this?

February 11th, 2015

From 1 January 2015, digital sales to countries in the European Union are required to have Value Added Tax added to their order, at the tax rate of the country in which the customer lives. This legislation was agreed upon in 2006 by all the countries in the EU, when online selling was in its infancy, and its intention was to tax large companies that sited their businesses in countries that had low tax rates. The unintended consequences mean that anyone who sells digital products online to customers in EU countries, no matter how few, is now obliged to charge and to account for EU VAT. Unfortunately, sole traders and micro businesses have no choice in this matter, and they would be fined if they didn’t comply with the law.