Why does ProZ.com sometimes charge VAT tax on memberships purchased from within the EU?

This question only affects members in Europe.

If, when purchasing a membership from within the European Union, a member does not supply a VAT number which can be verified online, ProZ.com is obliged by law to collect VAT tax against the purchase made, according to the VAT rate applicable in the country of the purchaser.

If a VAT number is supplied, no VAT tax is charged.

For those desiring more details: In July of 2003, the EU entered into effect a directive obliging non-EU suppliers of digital services to collect VAT tax on sales made to individuals (not businesses) living in the EU countries. ProZ.com reports and remits VAT taxes it collects to the German tax authority, under the provisions of the "Special Scheme for non-EU Businesses Providing Electronically Supplied Services to EU Consumers".

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