FINAL NOTICE - European Union VAT Changes Coming 1/1/2015

Tax laws in the European Union (EU), which govern the Value Added Tax
(VAT) rate applied to business-to-consumer digital goods, are changing
on 1/1/2015. This affects the VAT rate on content offered in the Windows
and Windows Phone Stores. You may want to start thinking about how this
change could impact your EU pricing decisions.

Beginning on 1/1/2015, the applicable VAT rate for paid
business-to-consumer transactions for digital goods will change from 15%
to the country-specific VAT rate.

All EU countries are Microsoft tax remit, which means the price you
select in Dev Center for your app and/or in-app purchase is the final
sale price to the customer and already includes applicable taxes.
Microsoft then subtracts the taxes from the price prior to payout, and
remits them on your behalf.

The table below shows the new VAT rates that will go in to effect on
Vat 2014 215 2014 2015
Austria 15% 20% Italy 15% 22%
Belgium 15% 21% Latvia 15% 21%
Bulgaria 15% 20% Lithuania 15% 21%
Croatia 15% 25% Luxembourg 15% 15%
Cyprus 15% 19% Malta 15% 18%
Czech Republic 15% 21% Netherlands 15% 21%
Denmark 15% 25% Poland 15% 23%
Estonia 15% 20% Portugal 15% 23%
Finland 15% 24% Romania 15% 24%
France 15% 20% Spain 15% 21%
Germany 15% 19% Slovakia 15% 20%
Greece 15% 23% Slovenia 15% 22%
Hungary 15% 27% Sweden 15% 25%
Ireland 15% 23% UK 15% 20%



Note: Tax rates are subject to change at any time. Microsoft cannot
guarantee the accuracy of these rates. For definitive information,
consult official EU sources.