If you sell digital products to buyers in the European Union, you generally have to charge VAT at the rate of the buyer's country. ScaleEdges can calculate and collect it for you: open Settings → Payments & pricing, check Enable EU VAT collection in the EU VAT card, enter your country and VAT number, choose your scheme and price display, then select Save settings.
ScaleEdges calculates and collects VAT on Stripe payments and keeps an accounting snapshot of every payment. You remain the seller: you are responsible for registering, filing your returns and paying the VAT to your tax authority. ScaleEdges does not file or pay VAT on your behalf.
This article explains how the tool works. It is not tax advice: check your situation with an accountant or your tax authority.
A quick reminder of the EU rules for digital products
- For sales of digital products to consumers (B2C) in the EU, VAT is generally due at the rate of the buyer's country.
- The One-Stop Shop (OSS) lets you declare and pay the VAT due in all EU countries through a single quarterly return in your own country.
- Small EU businesses whose cross-border sales stay under €10,000 per year can, in many cases, apply their own country's VAT instead.
- For sales to businesses (B2B) that have a valid EU VAT number in another country, the buyer usually accounts for VAT: this is the reverse charge.
Enable VAT collection
- Open Settings → Payments & pricing.
- In the EU VAT card, check Enable EU VAT collection.
- Choose your Country of establishment.
- Enter your Seller VAT number. It is printed on receipts and invoices.
- Choose a VAT scheme and how Displayed prices work. Both are explained below.
- Optionally, check Enable intra-EU B2B reverse charge.
- Select Save settings.
VAT scheme
- OSS — buyer-country rate across the EU: each EU buyer pays the rate of their country. Choose it if you are registered for the OSS.
- Domestic — tax only where registered: VAT is charged only for buyers in your country and in the countries listed under Additional VAT registrations. Sales to other countries are treated as out of scope.
Displayed prices
- VAT inclusive — extract VAT from the displayed price: the buyer pays the price shown, and the VAT is included in it. Your net revenue varies with the buyer's country.
- VAT exclusive — add VAT at checkout: VAT is added on top of your price at checkout. Your net revenue stays the same.
Additional registrations
If you are registered for VAT in other EU countries and use the domestic scheme, select Add registration for each of them, with the Country, VAT number and Registered on date.
Choose the VAT category of each product
Each product has a VAT category, in the product's Advanced settings:
| Category | When to use it |
|---|---|
| Standard digital product | Templates, software, courses, presets, audio, video… The standard rate of the buyer's country applies. |
| E-book — reduced rate where available | Electronic books. Many EU countries apply a reduced rate, sometimes 0%. ScaleEdges uses the reduced rate where it exists. |
| VAT exempt | Only when the supply is legally exempt from VAT. |
The category is applied after promotions and coupons.
ScaleEdges keeps a table of standard and e-book rates for the 27 EU countries, with their effective dates. When a country changes a rate, the new rate is added from its effective date, and past payments keep the rate that applied at the time.
How ScaleEdges determines the buyer's country
To charge the right rate, ScaleEdges compares several pieces of location evidence:
- the country of the buyer's IP address;
- the billing country entered at checkout;
- the country of the payment method.
When they agree, that country is used. When they point to different countries, the buyer is asked to confirm their country before paying. The evidence and the buyer's confirmation are stored with the payment, which helps you justify the rate applied if your tax authority asks.
Buyers outside the EU are not charged EU VAT: their sales are recorded as out of scope.
B2B sales and reverse charge
When Enable intra-EU B2B reverse charge is on, a business buyer can enter their VAT number at checkout. ScaleEdges checks it with the European Commission's VIES service:
- if the number is valid and belongs to another EU country than yours, no VAT is charged, and the sale is recorded as reverse charge;
- if the number is invalid, or if VIES is unavailable, VAT is charged normally.
Business buyers in your own country always pay your country's VAT.
Prepare your VAT return with the VAT report
Open the EU VAT report from Analytics. It groups the Net taxable base and the VAT collected by quarter, country, treatment and rate, which matches the structure of an OSS return.
- Choose the period: This month, Previous month, Last 3 months, Last 6 months, This year, or Custom dates.
- The Quarterly breakdown table shows sales, net base, VAT, gross amount and refunded amounts for each country and rate.
- Refunds are already deducted in proportion to the amount refunded.
- Select Export CSV to send the data to your accountant.
Always check the report before filing your return.
Frequently asked questions
Do I need to enable VAT if I am not registered for VAT? No. If you are not registered, for example because you benefit from a VAT exemption for small businesses, leave VAT collection disabled and ask your accountant what applies to you.
Should I choose VAT-inclusive or VAT-exclusive prices? Inclusive prices are simpler for consumers: they pay the price they see. Exclusive prices keep your net revenue identical in every country, but the total changes at checkout. Most sellers of digital products to consumers choose inclusive prices.
What about refunds? When you refund an order, the VAT part of the refund is deducted from the report in proportion to the amount refunded.
