How the 2025 VAT Rule Changes Will Impact Your Business (and How to Stay Compliant)

Are you offering services or selling digital products to clients in the EU? If so, VAT compliance might already feel like a maze. But with new VAT rules for 2025, things are about to get even trickier. Whether you’re a non-EU business or based in the EU, these changes will affect how you charge VAT, where you register, and the steps you’ll need to take to stay compliant.

In this article, we’ll break it all down—no jargon, no confusion, just clear steps to help you understand the changes and simplify VAT compliance.

What is VAT, and Why Does It Matter for Your Business?

VAT, or Value-Added Tax, is a consumption tax added to products and services. For businesses, VAT isn’t an additional expense—it’s a tax collected from clients on behalf of the government. However, for your clients, it’s an extra cost that makes your prices appear higher, which could potentially impact their purchasing decisions.

While VAT compliance isn’t new, the rules for live services, virtual events, and digital products are changing in 2025, making it crucial to stay informed.

What’s Changing with the 2025 VAT Rules?

Starting January 1, 2025, two major changes will come into play:

1. Live Offers Will Require VAT Collection Based on Client Location

   Currently, live coaching calls, workshops, and summits are treated as services where your business is located. This means VAT compliance follows your country’s rules.

   From 2025, however, you’ll need to charge VAT based on your client’s location for virtual events, group coaching, masterminds, and memberships with live components.

   
   

2. Simplified Rules for EU-Based Small Businesses

   EU-based businesses with cross-border sales under €100,000 annually will benefit from simplified VAT rules. This threshold means fewer registration headaches for smaller businesses operating within the EU.

   
   

How These VAT Rules Affect Non-EU based Coaching, Consultancy and Digital Course Creation Businesses

For businesses outside the EU, the impact varies based on the type of services offered:

Digital Products:

Selling e-books, pre-recorded courses, or downloadable guides to EU clients will require that you collect VAT based on the rates where your client is located. This applies from the first sale.

Live Events

Hosting virtual summits, live group coaching, or memberships with live components means charging VAT where your clients are located.

Personalized Services

One-on-one coaching is treated differently—VAT compliance follows the rules of the business’s location, not the client’s. So you follow the rules where your business is located.

Simplifying VAT Compliance

VAT compliance can feel overwhelming, but you don’t have to navigate it alone. Here are your options:

1. Use a Marketplace That Handles VAT for You

   Platforms like Teachable or Patreon collect and remit VAT on your behalf, so you don’t have to worry about compliance.

   
   

2. Register for the EU IOSS Non-Union Scheme

   This allows you to register in one EU country but collect VAT based on client location and file a single consolidated return.

   
   

3. Partner with VAT Experts Like HELLOTAX

   Companies like HELLOTAX take the stress out of VAT compliance by managing everything—from VAT registration to filings—for as little as CHF 70 (75 €) per month. They make compliance effortless, saving you hours of admin work.

   
   

Take Action Today and Save 10%

VAT compliance doesn’t have to be a headache. By partnering with experts like HELLOTAX, you can simplify the process, avoid costly mistakes, and focus on growing your business. As an added bonus, you can use my exclusive code LegallySheCan to save 10% on any Hellotax service.

Don’t Let VAT Hold Your Business Back

The 2025 VAT rule changes might seem daunting, but with the right approach, they don’t have to derail your plans. Whether you choose a platform that handles VAT, register for the IOSS scheme, or work with HELLOTAX, staying compliant will let you expand your business confidently across borders.

Need help deciding what’s right for you? Reach out, and I’ll personally introduce you to the HELLOTAX team. Let’s make VAT compliance simple, so you can focus on what really matters—growing your business.

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About the Author

Hi! I’m Vena Verga-Danemar, an Onlinepreneur Legal Strategist. As both a lawyer and an online business owner, I’ve helped dozens of coaches, consultants, and course creators legally start and grow their businesses using strategies that don’t require working 24/7.

Follow me in Instagram and Linkedin for tips and strategies on running a sustainable business that attracts leads and clients without the legal drama.