VAT is based on the buyer's country for digital goods/services [1], and in other cases (such as this) if the sales exceed 100 000 EUR per year. [2][3] In some c

VAT is based on the buyer's country for digital goods/services [1], and in other cases (such as this) if the sales exceed 100 000 EUR per year. [2][3] In some countries, like Finland, the limit is even lower at 35 000 EUR per year. [4] So if Oculus expects to sell more than 50 copies of the Rift to Finland, it will have to pay the Finnish VAT. Also, Luxembourg's VAT is 17% nowadays. [5] [1] https://kdp.amazon.com/help?topicId=A30464Q6OVH578 https://kdp.amazon.com/help?topicId=A30464Q6OVH578 [2] https://en.wikipedia.org/wiki/European_Union_value_added_tax#Distance_sales https://en.wikipedia.org/wiki/European_Union_value_added_tax... [3] https://www.gov.uk/guidance/vat-what-to-do-if-youre-an-overseas-business-selling-goods-in-the-uk https://www.gov.uk/guidance/vat-what-to-do-if-youre-an-overs... [4] http://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/traders/vat_community/vat_in_ec_annexi.pdf http://ec.europa.eu/taxation_customs/resources/documents/tax... [5] http://www.vatlive.com/european-news/luxembourg-vat-rise-17-2015/ http://www.vatlive.com/european-news/luxembourg-vat-rise-17-...