Honestly, if you are going to sell digital products to European citizens, you may be asked to apply VAT to your sales. As such, you will need to register for a VAT number. Meanwhile, you can register voluntarily, even if you don’t meet the requirements.
A value-added tax is important; it is imposed by the European government and other places in the world. VAT tax is consumption tax the EU charges in increments through a product’s market journey. The VAT tax imposed depends on the total value-added on the product. This tax in the European Union is levied as a destination-based tax – that is, the number depends on the buyer’s location.
The VAT number is issued upon registration; it helps the government track registered businesses’ VAT activities. The activities may include VAT tax collected from consumers, VAT paid, and tax credits earned. Getting an EU VAT number for your business has been made easy. However, not every business needs to register for an EU VAT number. For example, you don’t need EU value-added tax if you only sell in B2B (business-to-business) transactions. But, you need to register and get an EU VAT number if you sell digital products B2C (business-to-consumers) – even if it’s once.