If you live in Europe and plan to sell digital products like ebooks, courses, templates, or downloads through your Djangify site, there are VAT obligations you need to be aware of before you start selling.
This isn't unique to Djangify. Any seller running their own website rather than selling through a large marketplace like Etsy or Amazon is responsible for managing their own VAT compliance.
A Note on This Information
The information on this page is provided as a general overview to help you understand the landscape before you start selling. It is not legal or financial advice. Tax rules change, vary by country, and can depend on your individual circumstances. Before you set up your store and start selling, please do your own research and speak with a qualified accountant who has experience with digital products and international tax obligations. Getting this right from the start will save you a great deal of trouble later.
How EU VAT Works for Digital Products
VAT on digital products in the EU is charged at the buyer's country rate, not the seller's. This means if you're based in Germany and you sell an ebook to someone in France, you're required to charge French VAT on that sale.
Once your cross-border digital sales to EU consumers exceed €10,000 in a calendar year, you must be registered for VAT and applying the correct rate at checkout for each customer's country.
Selling to Customers Outside the EU
The €10,000 threshold and all EU VAT rules described above apply only to sales made to buyers within the EU. If you are based in Germany and sell a digital product to someone in the United States, the United Kingdom, or Australia, EU VAT does not apply to that sale. Each of those countries has its own separate tax system — the UK has its own VAT threshold, Australia has GST, and the US operates on a state-level sales tax basis - so obligations may still exist depending on your sales volume into those markets, but they are entirely separate from EU VAT and the OSS scheme.
The One Stop Shop Scheme
The good news is you don't need to register for VAT in every EU country individually. The EU created the One Stop Shop (OSS) scheme specifically to simplify this. You register once through your own country's tax authority, file a single quarterly return listing all your EU sales, and make one payment. Your tax authority then distributes what's owed to each member state on your behalf.
If you are not based in the EU but are selling to EU consumers, you can still use OSS by registering in any EU member state of your choice.
What This Means for Your Djangify Site
Djangify is a direct-selling platform, not a marketplace. This means Djangify does not act as the seller on your behalf and does not collect or remit VAT for you the way platforms do.
Your checkout will collect payment directly from your customers. It is your responsibility to ensure you are charging the correct VAT rate based on each customer's location and that you are registered for OSS if your sales require it.
Before You Launch in Europe
Before you start selling, it is worth taking these steps.
Check whether you are already VAT registered in your own country and what your obligations are for cross-border digital sales.
Register for OSS through your national tax authority's portal if your sales are likely to exceed the €10,000 threshold, or register proactively if you expect growth.
Speak to a local accountant or tax adviser familiar with digital products and EU VAT rules. The rules are straightforward once set up, but the initial registration and rate configuration is worth getting right from the start.
A Note on VAT Rates at Checkout
Djangify does not currently include automatic destination VAT calculation at checkout. If you need VAT to be calculated and displayed based on your customer's location, this is something to discuss with your developer or you can hire the Djangify developer to install this for you.