Do US Subscription Sites Need to Collect VAT from European Audiences?

For most of history, periodical publishers on both sides of the Atlantic Ocean have been able to provide their services without worrying about the

For most of history, periodical publishers on both sides of the Atlantic Ocean have been able to provide their services without worrying about the nitty-gritty of sales tax. And that’s been an operational and revenue boon for print subscription sales.But while the US has extended the same courtesy to almost all digital content, the UK and EU have not. In fact, in the UK, digital subscriptions comes with a whopping 20% value-added tax (VAT).Different UK publishers have dealt with the burden of VAT differently. Sites like Structured Credit Investor and Vet Visuals International only need to collect the VAT if an individual subscriber doesn’t have a business VAT ID to offer. The Week, on the other hand, charges a flat rate and has the accounting team of their parent company, Dennis Publishing, reconcile the amount to remit to the government afterwards.But what about US-based sites that have subscribers abroad? Are they required to collect and remit VAT?Deloitte tax experts Martin Ryan and Benno Tamminga say yes, and that’s why they’ll be talking about Collecting VAT for Online Subscription Sales in Europe during next month’s Members-Only Webinar on Subscription Site Insider. Tamminga and Ryan will cover what types of sites are subject to the tax (hint: it’s not just for content), how to remit payments, and why not collecting VAT can hurt future M&A deals.Our Webinars are usually priced at $247, but if you become a member, you can attend for free. This is critical information for any subscription site that has subscribers in Europe, so sign up today!

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