Different prices of Premium Membership in Website Posted April 24, 2013 If that were true then every company anywhere in the world who ever sold any products to anyone in the EU would have to abide by EU law. Do not mix up physical products and digital content. For physcal products the customer pays the tax when receiving the product. Example: I live in Germany and I ordered a smartphone from a Chinese company a few weeks ago. I paid the net price to the Chinese company and paid the tax when I got the product (Einfuhrumsatztsteuer is the term propper in German and that is nothing else than a VAT equivalent for products bought outside the EU). But for digital content, the issuing company has to collect the tax and forward it to the tax authorites.