I have an order from a customer in Russia for a software license. Do I have to charge VAT on that sale? Does it make any difference if I send the software on a CD or transfer it by email?
A license to use computer software is always treated as a service even if it is supplied in a medium you can handle, such as a CD. So it doesn’t make any difference to the VAT treatment if you supply the software on CD or by email. You should not charge VAT to your Russian customer as the supply of this service to a country outside the EU is outside the scope of VAT.