Upcoming VAT changes for users from the EU

Starting on January 1st, 2015, new VAT laws will apply for so-called electronic services in the European Union. These changes will affect mite, too. Our company is registered in Germany.

Until now, users from the EU are charged “our” German VAT rate of 19%. From 2015, users from the EU will be charged the VAT rate of their country of residence.

We do not want to raise the final price for mite. Thus, we implemented the tax changes in a way so all current customers will continue to pay the same price for mite, or even a couple of Cents less. In case of doubt, it’s on us to earn a little less.

Only future business customers from Luxembourg or Malta will have to pay some more Cents.

If you’re into EU tax laws, or wonder why you will have to pay even less in 2015: we got you covered. Please read-on for all the details and examples.

  1. For businesses and individuals who reside in Germany (as stated in their invoice address), nothing changes. mite will continue to be €5.00 per user per month, including 19% VAT.
  2. For businesses and individuals who reside outside of the EU, nothing changes. We don’t have to charge VAT. mite will continue to be €4.20 per user per month.
  3. For individuals who reside inside the EU but outside of Germany, we keep the current price, too. mite will continue to be €5.00 per user per month, including VAT.
    From 2015, the VAT rate will change if your national VAT rate differs from the German one, 19%. E.g., for individual users from the UK, the final price of €5 will then include 20% VAT. And we’ll earn a little less.
  4. For businesses who reside inside the EU but outside of Germany, not much changes. In most cases, mite will even be some Cents less.
    We still won’t have to charge German VAT, reverse charge applies. Until now, we charge “the German” net price, €4.20 per user per month. From 2015, we will calculate the net price depending on your national VAT rate. E.g., the net price for business customers from the UK will be €4.17, because VAT is 20% there. To prove that you’re a business, please fill in your valid EU VAT registration number at the tab »Account => Payment«.

Thanks for your attention. And back to more important things: happy holidays and cheers to a grand 2015!

Julia in Inside out