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Selling digital goods from Businesses to (End) Customers (B2C) inside the EU before 01.01.2015 was simple in comparison to today. Just apply your local countries VAT (in Germany 19%), and you had been fine. If your revenue was below a certain threshold (Germany 17.500€ per year), you even haven't had to apply any VAT at all.

This changed starting from 01.01.2015, where the EU introduced VATMOSS - also called VATMESS. Since then, all transactions on digital goods between B2C have to contain the local countries VAT of the customer (which differs a lot). The tax declaration has to be done for each country separately (but a simplified tax declaration can be done also). This was introduced to stop large companies like Amazon to sell digital goods from low tax states like Luxembourg, but introduced big confusion for smaller companies, as no revenue threshold can be applied.

This also applies for other EU foreign states like the US, where tax had to be applied since 2003.

Since 01.01.2015, inStacks Software used the services from, a US reseller. FastSpring (like Paddle) takes over the invoice creation process and also all VAT handling, which simplifies the process a lot (of course coming with additional fees).

On 01.04.2016, inStacks Software switched to, mainly because Paddle:

  • is a EU company, siting in London, UK
  • has a great support team
  • uses a cleaner and easier to use (overlay) checkout process

If you want to use Paddle based checkout on your RapidWeaver website also, have a look at Paddle Stack.

Further reading: 10 Things Online Sellers Need To Know About Taxes On Digital Goods And Services