Digital subscription VAT & tax checker

Choose where your business is based and where your subscriber is located. Enter the subscription price and select whether the price is VAT-inclusive or VAT-exclusive. The tool shows the indicative tax amount, net price and gross price for the selected location. For the US and the rest of the world it displays guidance notes instead of a single rate, because local rules vary.

The checker applies the destination principle used for B2C digital services: tax is generally due where the consumer is located, not where the business is based.

• UK consumer: 20% VAT.
• EU consumer: the destination-country VAT rate (Ireland 23%, Germany 19%, France 20%, Spain 21%, Netherlands 21%). EU businesses normally report these sales through the VAT OSS scheme.
• US consumer: sales tax varies by state. Many states tax digital goods and subscriptions, but thresholds and rates differ.
• Rest of world: rules vary widely. Some countries require local registration above a threshold; others do not tax digital subscriptions.

When a rate is available:

• VAT-inclusive price: net = price ÷ (1 + rate); tax = price − net.
• VAT-exclusive price: tax = price × rate; gross = price + tax.

This is an indicative model only. Tax rules change and depend on your specific circumstances, so confirm with a qualified tax adviser or local tax authority.

Suppose your business is in the UK and you sell a digital subscription to a consumer in Germany for £10 a month, VAT-inclusive.

• Applicable rate: Germany 19%
• Net price: £10 ÷ 1.19 = £8.40
• VAT amount: £10 − £8.40 = £1.60
• Gross price: £10.00

If the same £10 were VAT-exclusive, German VAT would add £1.90, giving a gross price of £11.90.

VAT and sales-tax rules for digital subscriptions change regularly. The UK currently charges 20% VAT on digital services supplied to UK consumers. EU member states apply their own standard VAT rates to B2C digital services supplied to their residents, with the VAT OSS scheme simplifying reporting. In the US, economic nexus laws mean that even out-of-state sellers may have to collect sales tax once they exceed a state's revenue or transaction threshold.

Sources

• HMRC / GOV.UK — VAT on digital services
• European Commission — VAT OSS for businesses
• Paddle — VAT, GST and sales tax on digital products

Tax rates and rules change frequently and depend on your specific situation. Use this tool as an indicative guide only and confirm with a qualified tax adviser or local tax authority.