What is VAT?
Value Added Tax (VAT) is a general consumption tax assessed on the value added to goods and services. It is a general tax that applies, in principle, to all commercial activities involving the production and distribution of goods and the provision of services. It is a consumption tax because it is borne ultimately by the final consumer.
While the European Union (EU) mandates certain guidelines for the VAT, the implementation and administration of VAT remains a matter of national law in each EU Member State. The most reliable source of information on current VAT rates for a specified product in a particular Member State would be that country's VAT authority.
RealNetworks is complying with its particular VAT obligations as related to digital goods and services.