Is your business delivering electronic content to consumers worldwide? The global market for digital media is booming, and products traditionally sold in tangible formats—music, books, movies—are readily available as instantaneous downloads, straight to a consumer’s device of choice.
But as companies switch from in-hand goods to downloadable materials, a new liability comes into play. Value-added tax (VAT), traditionally the burden of the end consumer of goods sold internationally, becomes an obligation for businesses delivering electronic content. Read on to learn more about where VAT comes into play and if your company is on the hook.