Calculation of VAT at Digistore24

​Here you can get all the important information about VAT at Digistore24.

1. Why you need an official business

Both vendors and affiliates need an official business to sell or promote products through Digistore24. Unfortunately, there is no way for a vendor or affiliate to receive a payout from Digistore24 without having registered an official business. Selling your own products or participating in sales through commissions are always entrepreneurial and commercial activities. Therefore, payouts can only be made to companies and not to private individuals.

2. Calculation of VAT for your company

Depending on where your company is based, you will receive your payouts as a gross or net amount:

Company based in Germany:

If you have a German company and are subject to VAT, then we’ll need proof of your VAT tax liability. To do this, simply submit your VAT ID to us. In this case, the payout is made as a gross amount. This means you will receive an additional 19% on your net revenue, which you then pay back to the tax office.

However, if you are a German small business owner, you will receive your payouts as a net amount because you are not required to pay VAT. In this case, we will need your tax number. These regulations apply both to vendors and affiliates.

Company based in other (EU) countries

In your case, the payout is always as a net amount.

If your customer comes from Germany or the EU, we as a reseller must pay the VAT to the German tax office or to the tax office of the respective EU country. That’s why you get the net amount.

If your private customer comes from a non-EU country (i.e. not Germany or the EU), then the final price of their order is calculated in the same way as the gross prices of German or EU-based private customers. In this case, your net commission is higher accordingly.

If you specify business owners (gross or net) as your customer target group, then the final sales price for foreign business customers is 19% lower.

 3. Calculation of VAT for your customers

​Why we impose VAT on your customers

As a reseller, Digistore24 is required to impose VAT on customers. We are in a B2B contractual relationship with you as a vendor and receive from you the license to sell your products. This means that the sale takes place between Digistore24 as the seller and your customer as the buyer. As a result, we as sellers are obliged to pass on the VAT to the respective tax offices.

What that means for you as a vendor or affiliate

Digistore24 deducts the VAT from the amount before it is paid to the vendors and affiliates. As a result, the net payout amount is calculated for the credit notes. Depending on the VAT Act of the company concerned, the credit note amount will be calculated and paid accordingly on the basis of the net amount.

This is very advantageous for you because Digistore24 pays the respective tax amounts to the tax offices of the buyer’s country of origin and thus removes a lot of bureaucratic work for you. If we didn’t do that, you would have to deduct the percentage of the gross amount and transfer it to the local tax office depending on the buyer’s country of origin in the EU. Furthermore, you’d have to do this for every customer. However, you don’t have to take care of this thanks to Digistore24.

Digistore24 participates in the reverse charge process for EU VAT.

Therefore, it is not the business owner providing the service but the service recipient who is responsible for paying the VAT. A credit note from Digistore24 to you is in principle an invoice from you to Digistore24. We also print this information on your payout receipt: “Pursuant to Section 3a (2) of the VAT Act, Digistore24 GmbH as the service recipient is liable for any VAT charged. (“reverse charge”)/VAT due to the recipient.

4. Calculation of VAT by product type

Different VAT rates apply depending on the product type:

Digital products

If you sell a digital product, we will deduct the country-specific VAT depending on the buyer country. For purchases made by German customers, there is 19% VAT added, and for Austrian customers, there is 20% VAT added. Customers from Switzerland have to pay 8% VAT. Digistore24 will pay the VAT to the respective tax office.

Seminars/Services

According to the VAT Act from 01.01.2015, the seminar country is considered as “place of supply” and not the buyer country. If your seminar takes place in e.g. Germany and an Austrian customer participates in it, then they have to pay 19% VAT. If the seminar takes place in Austria, a German customer must pay 20% accordingly.

Real books

Books are sold with 7% VAT on Digistore24.

Food supplements

In Germany, food supplements are subject to a lowered tax rate of 7%. The VAT rate of the sender country is used here.

Audio books

Audio books on physical media such as CDs are charged at a 7% reduced tax rate. If you sell an audio book purely digitally, the usual 19% VAT will be charged.

Delivery products

The general VAT rate of the sender country is used here.

Sales to companies

If you have specified the option “net prices” for your product, EU business owners can purchase it for the net amount by giving their correct company data and their VAT ID. There will be no VAT charged here.

Updated on 3. April 2019

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