It has been a while since I read the law’s myself (I stay updated based on the changes from my collegues who are tax specialists). Which does mean that I can also be mistaken, but as far as I know the unfair pricing goes over this https://europa.eu/youreurope/citizens/consumers/unfair-treatment/unfair-pricing/index_en.htm, but yeah it is for B2C mainly and not for B2B. You look at if you are majorly B2B or B2C and list your prices based on that.
It is also hard to do this properly, in the end you cannot ask somebody from a 3rd world country to pay 60 euro for the same (digital) game as somebody in the EU, but in the end the costs for the seller are basically the same.
It sorta is, we’re the only ones paying it in reality?
Well consumers don’t pay it to the tax offices, nor do they do the reporting. It is a tax based on the added value the company brings to the end product. If you buy stuff for 100k excluding VAT and sell it for 200k excluding VAT ou pay 42k minus 21K aka 21K VAT. Which is 21% of your “profit” (in NL). It is just that it is a transparant tax and easily calculated that the end consumer also pays the 21% VAT rate. At the same time end consumers also pay for the profit tax, wage tax and other forms of tax that a company has to pay, but those aren’t as easely calculated.
As an EU national, a trader cannot charge you more when you buy a product or service just because of your nationality or country of residence. Some price differences can be justified if they’re based on objective criteria and not just on nationality. For example, differing postage costs may mean you pay more for delivery in one country than in another.
But they aren’t discriminating by your country of residence. The PRICE that the vendor charges is the same regardless of where you’re from. Your own country charges VAT, through the vendor. That’s on top of the price.
Well consumers don’t pay it to the tax offices, nor do they do the reporting
Yes, but it’s a direct line item when they buy something. And only consumers don’t get it back. It is a tax on consumers specifically.
Yes, but it’s a direct line item when they buy something. And only consumers don’t get it back. It is a tax on consumers specifically.
Except it isn’t, yes it works out like that, but legally it is a tax on the value added by the company. It is just passed on to the consumer by 100%, but that is the same for any tax.
Just like with any value added, sales or revenue tax it will be passed onto the consumer 1 to 1, but it doesn’t change the fact it is designed as a company tax and tax systems are based around that fact.
Only if everybody could keep a proper bookkeeping you could go to a system where your find a system that taxes only the businesses and the consumers get it back, but in the end the companies would just increase the prices and pass it onto the consumers anyway.
But they aren’t discriminating by your country of residence. The PRICE that the vendor charges is the same regardless of where you’re from. Your own country charges VAT, through the vendor. That’s on top of the price.
Technically they are, again not the consumers issue that the VAT rate is higher. If the company doesn’t need to pay VAT (because of the revenue being so low in that year) then they don’t have to pay VAT, but it doesn’t change the price of the product you buy, at least not in basis. The suggested retail price stays the same, the price for digital goods stay the same.
It has been a while since I read the law’s myself (I stay updated based on the changes from my collegues who are tax specialists). Which does mean that I can also be mistaken, but as far as I know the unfair pricing goes over this https://europa.eu/youreurope/citizens/consumers/unfair-treatment/unfair-pricing/index_en.htm, but yeah it is for B2C mainly and not for B2B. You look at if you are majorly B2B or B2C and list your prices based on that.
It is also hard to do this properly, in the end you cannot ask somebody from a 3rd world country to pay 60 euro for the same (digital) game as somebody in the EU, but in the end the costs for the seller are basically the same.
I suspect you mean this one
But they aren’t discriminating by your country of residence. The PRICE that the vendor charges is the same regardless of where you’re from. Your own country charges VAT, through the vendor. That’s on top of the price.
Yes, but it’s a direct line item when they buy something. And only consumers don’t get it back. It is a tax on consumers specifically.
Except it isn’t, yes it works out like that, but legally it is a tax on the value added by the company. It is just passed on to the consumer by 100%, but that is the same for any tax.
Just like with any value added, sales or revenue tax it will be passed onto the consumer 1 to 1, but it doesn’t change the fact it is designed as a company tax and tax systems are based around that fact.
Only if everybody could keep a proper bookkeeping you could go to a system where your find a system that taxes only the businesses and the consumers get it back, but in the end the companies would just increase the prices and pass it onto the consumers anyway.
You can read the Dutch law https://wetten.overheid.nl/BWBR0002629/2026-01-01#HoofdstukII and it basically only speaks about companies.
Technically they are, again not the consumers issue that the VAT rate is higher. If the company doesn’t need to pay VAT (because of the revenue being so low in that year) then they don’t have to pay VAT, but it doesn’t change the price of the product you buy, at least not in basis. The suggested retail price stays the same, the price for digital goods stay the same.