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sales tax?

sales tax for international orders

         

openmind

1:01 pm on Feb 19, 2006 (gmt 0)

10+ Year Member



Hi, what is our sales tax situation if we are a German based company and want to sell ebooks online? How do you we have to price the products - with or without sales tax and what tax regulations apply?
Thanks in advance.
OM

chodges84

5:21 pm on Feb 19, 2006 (gmt 0)

10+ Year Member



As far as I am aware it is the following as far as VAT is concerned:

Any one in Germany you charge VAT on the product.
Anyone outside of Germany but with the EU you charge VAT on the product.
Any VAT registered company outside of Germany but within the EU you don't have to charge VAT on. (but you can and they can reclaim it locally).
Anywhere outside of the EU, you don't charge VAT.

I may be wrong but that is my understanding ofhow it works for 'physical goods'. I see no reason why it would be different for ebooks.