EU Digital Package: Will Your VAT Rate Change?

On July 1st, 2021, the EU digital package will come into play. It will also bring along new rules for shipping within Europe. Learn if your earnings will be affected by the changes.

What does the EU digital package change?

The EU digital package newly regulates in which EU country the VAT is calculated for cross-border shipping – in the destination country or in the shipping country. In other words, it is a question of whether the German VAT or the VAT of the destination country is applied to an order. Only deliveries to private customers are affected by the new regulation.

What does this mean for me?

If orders are placed from one of the following countries, nothing will change for you. This is because Spreadshirt already charges customers the VAT rate of the destination country when shipping to these countries. On this basis, the amount of your payment will be calculated and paid out accordingly.

Destination country VAT rate

Shipping Country | VAT rate
Austria (AT) | 20%
Belgium (BE) | 21%
Czech Republic (CZ) | 21%
Denmark (DK) | 25%
Spain (ES) | 21%
Finland (FI) | 24%
France (FR) | 20%
Ireland (IE) | 23%
Italy (IT) | 22%
Luxembourg (LU) | 17%
The Netherlands (NL) | 21%
Poland (PL) | 23%
Sweden (SE) | 25%

However, if the order comes from one of the following countries, your payment may change. This is because Spreadshirt used to apply the German VAT rate of 19% when shipping to these countries. As of July, the new tax rate of the destination country will be applied. Again, you don’t have to do anything, and this will happen automatically. Spreadshirt will take care of the EU digital package changes.

Destination country VAT rate

Shipping Country | VAT rate
Bulgaria (BG) | 21%
Cyprus (CY) | 19%
Estonia (EE) | 20%
Greece (EL) | 24%
Croatia (HR) | 25%
Hungary (HU) | 27%
Lithuania (LT) | 21%
Latvia (LV) | 21%
Malta (MT) | 18%
Portugal (PT) | 23%
Romania (RO) | 19%
Slovenia (SI) | 22%
Slovakia (SK) | 20%

If you have any questions about the impact of the EU digital package, ask us in the forum.