Do I have to charge VAT on digital products?

If your platform is merchant of record, it charges and remits it for you. If not, the duty is yours wherever your buyers create one.

Does VAT apply in my country?

VAT-style rules on digital goods exist in many countries under different names. Check your own rules and the rules where your buyers live.

Who pays VAT, me or the buyer?

The buyer pays it as part of the price. The seller, or the merchant of record, is responsible for collecting it and passing it on.

Should VAT be included in my price?

Consumer-facing prices usually should be tax-inclusive, so the number shown is the number paid. Check what is required where your buyers are.

What if I only sell a few items?

Thresholds vary and some regions have none. Low volume is not automatically exempt, so check rather than assume.

What does merchant of record mean?

It means the platform is legally the seller to the buyer. It takes on the tax duty, and you are selling to the platform rather than to the public.

What is VAT on digital products?

Updated 17 September 2026

It is charged where the buyer is

VAT on digital goods is a tax on the sale that many countries charge based on where the buyer lives, not where the seller does. So the same file can carry different rates in different countries on the same day. Whether you have to handle that depends on whether your platform is merchant of record.

That one detail decides how much work the tax is for you.

Why that is hard for a small seller

In principle it can mean registering in places you have never visited, and some regions set no minimum at all.

Doing that properly for a side project is not realistic, which is why the platform choice matters so much here.

Merchant of record solves it

A platform that is merchant of record sells to the buyer itself and handles the tax. Your relationship is with the platform, not with the buyer’s tax authority.

If your platform is not merchant of record, the obligation is yours, whatever their checkout shows.

What to do

Find out, in writing, which one your platform is. Then ask an accountant what that means for you.

Do not guess. The answer changes your obligations completely.

FAQ

Questions, answered straight.

Do I have to charge VAT on digital products?: If your platform is merchant of record, it charges and remits it for you. If not, the duty is yours wherever your buyers create one.
Does VAT apply in my country?: VAT-style rules on digital goods exist in many countries under different names. Check your own rules and the rules where your buyers live.
Who pays VAT, me or the buyer?: The buyer pays it as part of the price. The seller, or the merchant of record, is responsible for collecting it and passing it on.
Should VAT be included in my price?: Consumer-facing prices usually should be tax-inclusive, so the number shown is the number paid. Check what is required where your buyers are.
What if I only sell a few items?: Thresholds vary and some regions have none. Low volume is not automatically exempt, so check rather than assume.
What does merchant of record mean?: It means the platform is legally the seller to the buyer. It takes on the tax duty, and you are selling to the platform rather than to the public.

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