Microsoft no longer routing it’s sales through Luxembourg
NOTICE – European Union VAT Changes Coming 1/1/2015
Tax laws in the European Union (EU), which govern the Value Added Tax (VAT) rate applied to business-to-consumer digital goods, are changing on 1/1/2015. This affects the VAT rate on content offered in the Windows and Windows Phone Stores. You may want to start thinking about how this change could impact your EU pricing decisions.
Beginning on 1/1/2015, the applicable VAT rate for paid business-to-consumer transactions for digital goods will change from 15% to the country-specific VAT rate.
All EU countries are Microsoft tax remit, which means the price you select in Dev Center for your app and/or in-app purchase is the final sale price to the customer and already includes applicable taxes. Microsoft then subtracts the taxes from the price prior to payout, and remits them on your behalf.
The table below shows the new VAT rates that will go in to effect on 1/1/2015.
Note: Tax rates are subject to change at any time. Microsoft cannot guarantee the accuracy of these rates. For definitive information, consult official EU sources.