VAT Information Notice
VAT rates and thresholds shown are based on EU regulations and may change. Rates are subject to change by member states. This is general information only - consult a VAT specialist or your accountant for compliance advice. Information current as of January 2025.
Is Your Course a Digital Product?
VAT treatment depends on whether your education product is classified as a "digital service" or a "live service." This matters for where VAT is charged.
Digital Services (Automated)
- • Pre-recorded video courses
- • Downloadable ebooks/materials
- • Self-paced online programs
- • Automated membership content
VAT: Customer's location
Live Services (Human Interaction)
- • 1:1 coaching calls
- • Live webinars/workshops
- • Group coaching sessions
- • Consulting/training services
VAT: Usually your location (B2C) or reverse charge (B2B)
VAT Rules by Customer Type
B2C: Selling to Individual Students
EU Students (Digital Courses)
Charge VAT at their country's rate (17-27%). Use OSS to report all EU sales through one return instead of registering in each country.
EU Students (Live Coaching)
Generally taxed where you're established (your country's VAT rate). Some exceptions for in-person events.
Non-EU Students (US, UK, etc.)
No EU VAT. Check destination country rules if applicable. Most digital services to non-EU are VAT-free from EU perspective.
B2B: Selling to Companies
EU Businesses with VAT Number
No VAT charged. Use reverse charge mechanism. Include their VAT number on invoice + "Reverse charge" note.
Non-EU Businesses
No EU VAT. Standard B2B export of services.
€10,000 Threshold Explained
When Do You Need to Worry About This?
The €10,000 threshold applies to B2C digital sales to EU consumers.
Under €10k EU B2C Sales
You can charge your home country's VAT rate to all EU customers. Simpler compliance.
Over €10k EU B2C Sales
Must charge customer's country VAT rate. Register for OSS or in each country.
This threshold is for your total EU B2C digital sales across all EU countries combined.
Platform vs Direct Sales
Merchant of Record Platforms
Gumroad, Paddle, some Teachable plans
- ✓They handle customer VAT
- ✓They invoice the customer
- ⚠You invoice them (B2B, no VAT)
- ⚠Higher platform fees
Direct Sales (Stripe, etc.)
Your own checkout, Stripe Billing
- ⚠You handle VAT compliance
- ✓Lower payment fees
- ✓Stripe Tax can calculate VAT
- ✓Full control over pricing
Practical Examples
Example 1: €500 Course to German Student
Pre-recorded course (digital product) sold B2C.
VAT: 19% German VAT = €95 VAT on €500 sale.
Report via OSS quarterly.
Example 2: €2,000 Cohort to French Company
Live cohort program (service) sold B2B with VAT number.
VAT: €0 — Reverse charge applies.
Invoice states: "Reverse charge - VAT to be accounted for by recipient."
Example 3: €150/month Coaching to US Client
1:1 coaching (service) to non-EU individual.
VAT: €0 — No EU VAT on services to non-EU.
Regular invoice, no VAT line.
Frequently Asked Questions
Everything you need to know before getting started
All information verified as of December 2025. Prices and features subject to change. Always verify current pricing with providers.
