Selling digital event tickets with kits or merchandise? Learn how VAT on hybrid digital events with physical add-ons are treated in the EU and when OSS rules may no longer apply.
What Are Hybrid Sales, and Why Do They Matter for VAT?
More and more online sellers are offering digital events—like webinars, livestreamed classes, or virtual tastings—bundled with physical extras such as printed workbooks, merchandise, or ingredient kits.
This combination is often called a hybrid sale: part digital, part physical.
While it may seem like a great customer experience, it comes with a challenge—VAT compliance. In 2025, VAT on hybrid digital events has become a growing concern, especially when you’re selling across EU borders.
If you’re selling digital tickets that include a physical add-on, this article will help you understand:
-
What kind of VAT treatment applies
-
Whether OSS can still be used
-
And what steps you need to take to stay compliant
Is It One Product or Two? Mixed vs Composite Supplies
When selling a digital event with a physical add-on, the first VAT question is:
Is this a single product or two separate supplies?
Two possibilities under EU VAT law:
1. Mixed supply
You’re selling two separate items:
-
A digital service (e.g. livestream access)
-
A physical good (e.g. tasting kit or printed book)
Each is taxed separately, possibly at different rates and in different ways.
2. Composite supply
You’re selling one main product, and the other is a secondary element that supports it.
Example: An online course where a printed workbook is just a support tool.
VAT is based on the main element (in this case, the course).
Correctly identifying the supply structure is essential. It affects the VAT rate, invoicing, and reporting obligations.
If you’re specifically selling tickets to online events, it’s worth reviewing our in-depth article on EU VAT Changes for Digital Events in 2025. It covers how digital events are classified for VAT purposes, what changed in recent years, and what sellers need to consider when offering access to webinars, online workshops, or virtual experiences in the EU.
VAT Rates and Reporting for Hybrid Sales
Digital Event (Service)
-
Taxed in the customer’s EU country
-
Reported via the One-Stop Shop (OSS) if B2C
Physical Add-On (Good)
-
Taxed where the goods are shipped
-
Cannot be reported via OSS
-
May require:
-
Local VAT registration in the destination country
-
Or the use of IOSS if the goods are low-value (under €150 and imported from outside the EU)
-
Important: If you’re bundling physical goods with your event, OSS alone may no longer be sufficient. You might need additional registrations depending on the countries where you’re shipping.
Real-World Examples for Sellers
Let’s look at how this plays out in practice:
Example 1: Live Webinar + Printed Workbook
You host a paid webinar and mail each participant a printed workbook.
-
If the webinar is the main product, the workbook is a composite supply.
-
VAT applies to the full price at the rate for the webinar (typically where the customer is based).
-
OSS can be used.
Example 2: Online Baking Class + Ingredient Kit
You offer a digital baking class and ship an ingredient kit to each participant.
-
The products are separate and equally important → mixed supply.
-
The class: taxed in the customer’s country (OSS).
-
The kit: taxed in the shipping destination. OSS cannot be used.
-
You may need local VAT registration or IOSS.
Example 3: Art Class + Optional Sketchbook
Sketchbook is offered as an optional extra, charged separately.
-
Each supply is fully independent.
-
Separate invoices, separate VAT treatment.
-
Easier to manage and report — highly recommended when possible.
For the most authoritative and up-to-date framework on VAT rules—including how hybrid digital events fit into evolving VAT classifications—consult the European Commission’s VAT in the Digital Age (ViDA) overview. This explains the new regulations, including updated place-of-supply and e-invoicing rules, adopted on March 11 2025, and provides official guidance on VAT obligations for complex digital and mixed supplies
Staying Compliant in 2025: What You Need to Do
If you’re offering digital events with physical add-ons, here’s your VAT checklist for 2025:
Classify the supply correctly: composite or mixed? Apply the correct VAT rate for each part Use OSS only for digital services Register for VAT or use IOSS for physical goods if required Keep separate invoicing and records if supplies are distinct Consult local VAT rules when in doubt—especially for goods
If you’re new to VAT rules for online activities, it’s helpful to start with the basics. Our guide on Navigating VAT for Digital Services in the EU explains how the EU defines digital services, when VAT applies, and how the One-Stop Shop (OSS) can help streamline cross-border compliance—especially useful for sellers offering webinars, courses, or automated tools.
Book a free consultation
Our VAT experts are happy to help you. Book a free consultation today!
How hellotax Can Help with VAT on hybrid Digital Events with Physical Add-Ons
Handling VAT across multiple EU countries—especially when physical goods and digital services are bundled—can get complicated fast. That’s where hellotax comes in.
We support hybrid sellers by:
-
Registering for VAT in EU countries where physical goods are shipped -
Managing OSS and IOSS filings across borders -
Calculating the right VAT rates for mixed and composite supplies -
Acting as a fiscal representative in countries where it’s required -
Offering expert guidance to help you classify your sales correctly
Whether you’re hosting an online event, shipping merchandise, or scaling across the EU, hellotax simplifies compliance—so you can focus on delivering great experiences to your customers.
Key Takeaway
Selling digital events with physical add-ons means you’re dealing with what’s known as VAT on hybrid digital events. This setup brings added complexity in 2025: OSS may not cover all parts of your sale, and you may need local VAT registrations or IOSS to remain compliant.
The key is to:
-
Correctly classify whether your offer is a mixed or composite supply
-
Apply the right VAT rates based on customer location and product type
-
Keep clear records and invoices for each element of the sale
Struggling with VAT on hybrid digital events?
Let hellotax simplify compliance for you. From automation tools to fiscal representation, we handle your VAT obligations—so you can focus on creating great events and scaling your business across Europe.
Get started with hellotax today with a free consultation.
The post VAT on hybrid Digital Events with Physical Add-Ons in 2025 appeared first on Hellotax Blog.
This articles is written by : Nermeen Nabil Khear Abdelmalak
All rights reserved to : USAGOLDMIES . www.usagoldmines.com
You can Enjoy surfing our website categories and read more content in many fields you may like .
Why USAGoldMines ?
USAGoldMines is a comprehensive website offering the latest in financial, crypto, and technical news. With specialized sections for each category, it provides readers with up-to-date market insights, investment trends, and technological advancements, making it a valuable resource for investors and enthusiasts in the fast-paced financial world.