EU VAT for SaaS &
Digital Services
Selling software subscriptions or digital services to EU customers? The VAT rules split cleanly between B2B and B2C. Here's exactly what applies to you.
Which VAT rule applies to your sale?
Follow the decision tree for your customer type.
Is this a B2B or B2C sale?
EU VAT rates for SaaS — all 27 countries
The rate your B2C customer pays, and what B2B customers self-account at under reverse charge.
| Country | Standard VAT | B2B from abroad | B2C digital services |
|---|---|---|---|
| 🇦🇹 Austria | 20% | 0% — Reverse Charge | 20% via OSS |
| 🇧🇪 Belgium | 21% | 0% — Reverse Charge | 21% via OSS |
| 🇧🇬 Bulgaria | 20% | 0% — Reverse Charge | 20% via OSS |
| 🇭🇷 Croatia | 25% | 0% — Reverse Charge | 25% via OSS |
| 🇨🇾 Cyprus | 19% | 0% — Reverse Charge | 19% via OSS |
| 🇨🇿 Czechia | 21% | 0% — Reverse Charge | 21% via OSS |
| 🇩🇰 Denmark | 25% | 0% — Reverse Charge | 25% via OSS |
| 🇪🇪 Estonia | 22% | 0% — Reverse Charge | 22% via OSS |
| 🇫🇮 Finland | 25.5% | 0% — Reverse Charge | 25.5% via OSS |
| 🇫🇷 France | 20% | 0% — Reverse Charge | 20% via OSS |
| 🇩🇪 Germany | 19% | 0% — Reverse Charge | 19% via OSS |
| 🇬🇷 Greece | 24% | 0% — Reverse Charge | 24% via OSS |
| 🇭🇺 Hungary | 27% | 0% — Reverse Charge | 27% via OSS |
| 🇮🇪 Ireland | 23% | 0% — Reverse Charge | 23% via OSS |
| 🇮🇹 Italy | 22% | 0% — Reverse Charge | 22% via OSS |
| 🇱🇻 Latvia | 21% | 0% — Reverse Charge | 21% via OSS |
| 🇱🇹 Lithuania | 21% | 0% — Reverse Charge | 21% via OSS |
| 🇱🇺 Luxembourg | 17% | 0% — Reverse Charge | 17% via OSS |
| 🇲🇹 Malta | 18% | 0% — Reverse Charge | 18% via OSS |
| 🇳🇱 Netherlands | 21% | 0% — Reverse Charge | 21% via OSS |
| 🇵🇱 Poland | 23% | 0% — Reverse Charge | 23% via OSS |
| 🇵🇹 Portugal | 23% | 0% — Reverse Charge | 23% via OSS |
| 🇷🇴 Romania | 19% | 0% — Reverse Charge | 19% via OSS |
| 🇸🇰 Slovakia | 20% | 0% — Reverse Charge | 20% via OSS |
| 🇸🇮 Slovenia | 22% | 0% — Reverse Charge | 22% via OSS |
| 🇪🇸 Spain | 21% | 0% — Reverse Charge | 21% via OSS |
| 🇸🇪 Sweden | 25% | 0% — Reverse Charge | 25% via OSS |
The EU One Stop Shop (OSS) — for B2C sales
If you sell digital services to EU consumers, OSS lets you handle all 27 countries through one filing.
EU One Stop Shop (OSS)
One registration · One quarterly return · 27 EU markets
Register once
Register for OSS in your home EU country. Non-EU businesses use the Non-Union OSS scheme.
Collect correct VAT
Charge customers the VAT rate of their country at checkout. Show this as local VAT on receipts.
File quarterly
Submit one OSS return every quarter listing sales by country. Deadline: last day of the month after quarter-end.
Pay centrally
Pay the total VAT collected to your home tax authority. They distribute to the relevant EU countries.
OSS only covers B2C digital services. B2B sales to VAT-registered businesses use reverse charge instead — no OSS filing needed for those. Official EU OSS information ↗
Tools that handle EU VAT automatically
Most SaaS billing platforms can automate VAT calculation, collection, and reporting.
Automatically calculates EU VAT at checkout. Applies reverse charge when customer provides a valid VAT number. Integrates with Stripe Billing.
Acts as Merchant of Record — Paddle handles all EU VAT collection, filing, and remittance on your behalf. Popular with SaaS founders.
VAT compliance layer that integrates with Stripe, PayPal, and others. Generates compliant invoices and files OSS returns automatically.
Merchant of Record for digital products. Handles EU VAT including OSS filing. Good for indie developers and small SaaS.
Enterprise tax compliance platforms. Integrate with your billing system to automate EU VAT calculation and multi-country filing.
Subscription billing platforms with built-in EU VAT support. Can validate VAT numbers, apply reverse charge, and generate compliant invoices.
SaaS VAT — common questions
No — always verify it using the EU VIES system at ec.europa.eu/taxation_customs/vies. Only apply reverse charge if VIES confirms the number is valid. Save a copy of the confirmation. If you apply 0% VAT based on an invalid number without checking, your tax authority may hold you liable for the uncollected VAT. Most billing platforms (Stripe Tax, Paddle, Chargebee) run VIES checks automatically.
No — that's exactly what OSS solves for B2C. One OSS registration in your home country covers all 27 EU member states for digital services to consumers. For B2B sales, reverse charge means the customer handles the VAT in their country — you don't need to register there either. The only time you'd need local registration is for specific activities like selling physical goods with warehousing in another EU country.
Without a valid VAT number, you cannot apply reverse charge. Treat the sale as B2C and charge VAT at their country's rate. Some small businesses in the EU are below the VAT registration threshold and genuinely have no number — this is legitimate. Your invoice should then include the applicable VAT amount, and you report it via OSS if you're registered, or your local VAT return otherwise.
Yes. If you sell digital services to EU customers, EU VAT rules apply regardless of where your company is based. For B2B sales to VAT-registered EU businesses, reverse charge still applies — your customer handles their local VAT. For B2C sales to EU consumers, you must charge and remit VAT at the customer's country rate. Non-EU businesses can use the Non-Union OSS scheme (register in any EU country) to handle B2C VAT compliance centrally.
Yes. The payment structure (monthly, annual, upfront, usage-based) doesn't affect whether reverse charge applies. What matters is whether the supply is a B2B service between VAT-registered businesses in different EU countries. An annual SaaS subscription is still a service — reverse charge applies at the point of supply, which is typically when the invoice is issued or payment is received, whichever comes first.
You must keep records for at least 10 years covering: all invoices issued (including those at 0% with reverse charge), VIES validation confirmations for each B2B customer, evidence of customer location for B2C sales (two non-contradictory pieces: IP address, billing address, bank country, etc.), OSS return copies, and payment records. Most billing platforms store this automatically — ensure you can export it.