As of January 1st, customers buying digital products online (music, movies, books and digital applications) will have to pay the VAT in their respective countries. Europe considers music, movies, books and digital applications to be ‘online services’.
From January 1st onwards, Belgian consumers buying such online services will therefore pay VAT in Belgium instead of in the country where the provider is located, which is usually Luxemburg. This means Belgian customers will pay Belgium’s 21% VAT instead of Luxemburg’s 15%.
This rule does not, however, apply for the purchase of products for which the Belgian customer must pay the current VAT in the merchant’s country.