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what are the tax liabilities for an international transaction?
user
after a bit of rooting around the hmrc sites, i found this page which says this: one key difference is that digitised products are classed as electronically-supplied services for vat and customs duties. these services are: for vat purposes, the place of supply of these services is the country in which the customer lives. if you supply electronic services to a business customer in another european union (eu) country, the customer accounts for any vat due in that country. you should not charge uk vat. if you supply electronic services to a consumer, charity or government body in another eu country, you have to account for uk vat. if you supply electronic services to anyone in a country outside the eu, you don't pay any vat. if, as a uk business, you buy electronic services from a company outside the uk, you have to account for vat. if i read this correctly, i as the supplier of the website need to account for vat only if the sponsor is a consumer, charity or government body in another eu country. it is not covered in this site, but i assume i must also account for vat for a customer based in the uk.  so in answer to the original question, a customer from canada (which is currently outside the eu) would account for the vat themselves, and i would simply charge the gross amount.
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