If your company sells subscriptions across borders, VAT rules depend on where your business is established, where your customers are located, and whether you sell to businesses (B2B) or private consumers (B2C).
Customers in Your Own Country
All sales to customers in your own EU member state are subject to your domestic VAT rate, regardless of whether the customer is a business or a consumer.
Customers in Other EU Countries
B2B – Business Customers
If the customer provides a valid VAT number, you may issue the invoice without VAT under the reverse charge mechanism.
If the customer does not provide a VAT number, you must charge your domestic VAT rate.
B2C – Consumer Customers
If your total cross-border B2C sales within the EU remain below €10,000 per year (combined across all EU countries), you may continue to apply your domestic VAT rate.
Once you exceed €10,000 per year, you are required to charge the VAT rate of the customer’s country of residence (the “destination principle”).
To simplify this, EU businesses can use the One Stop Shop (OSS) scheme:
You register once in your home country.
You report and pay the VAT due in all other EU countries through a single OSS return.
Your local tax authority then distributes the VAT to the other member states.
This means you do not need separate VAT registrations in every EU country where you have subscribers, as long as you use OSS.
Customers Outside the EU
Subscriptions sold to customers outside the EU are generally exempt from EU VAT (zero-rated), provided you can document that the customer is located outside the EU.
Summary
B2B in the EU with VAT number: invoice without VAT (reverse charge).
B2B in the EU without VAT number: invoice with your domestic VAT.
B2C in the EU:
Below €10,000 in total annual cross-border sales → charge your domestic VAT.
Above €10,000 → charge the customer’s local VAT rate, using OSS.
Customers outside the EU: no EU VAT (but check local rules in the customer’s country).
👉 Always consult your accountant or local tax authority to ensure you comply with the rules in your specific jurisdiction.