Why does ProZ.com collect VAT? The company is not based in the EU.

Even though ProZ.com is not based in the EU, as a company selling a digital service "consumed" in the EU, ProZ.com is obligated by the EU to collect VAT at the national rate of the consumer, and to remit all VAT collected to a single EU country in a quarterly basis. ProZ.com remits to Germany.

For more information, see the EU Directive relating to VAT on digital services entered into force on 1 July 2003, available at http://ec.europa.eu/taxation_customs/business/vat/telecommunications-broadcasting-electronic-services_en