Originally Posted by m4yadult

It depends on various variables. The locaton of the customer, location of service providing company and location and agreement of billing company and the goods or services provided.

If you are a service provider located in the EU and do your own billing for services which are delivered online (e.g. download of movies), you have to charge all customers from the EU with VAT. No VAT for customers in foreign countries outside the EU in this example.

Even service providers located outside the EU have to charge VAT for EU customers and pay it to the country the customer is living in. The service provider has to register in one of the EU countries of his choice and has to pay collected VAT to this country. There is a special claering system for this law. But I can´t see anyone doing this and there is no way to collect it.