How to sell software and digital licences in Europe: the complete guide

1. Choose your channel: own site or marketplace

Selling from your own site means handling checkout, invoicing, VAT, fraud prevention, file delivery and support yourself. A multi-vendor marketplace gives you ready-made infrastructure and an audience already looking for software: you upload the package, the platform handles payment, delivery and compliance.

On SoftwareBay you publish a ZIP archive, the platform analyses its structure (files and folders) and shows it to the buyer before purchase. The download is instant after payment and every version of the package stays tracked.

• Own site: maximum control, but every obligation is on you.
• Marketplace: fast onboarding, existing traffic, a commission on sales.
• Mixed model: marketplace as a shop window, your site as the brand.

2. GDPR: your buyers' personal data

If you process data of people in the EU, the GDPR applies, even if you are based outside the Union. In software sales the typical data are emails, billing details and download logs.

When you sell through a marketplace, the platform is the controller for the account and the transaction: you only receive the data needed for the sale and never handle cards or payment credentials directly. If your software collects data itself (telemetry, accounts, cloud sync), you must state it in the product description and provide your own privacy notice.

• State in the product page whether the software collects data or connects to external services.
• Never put third-party personal data inside the ZIP package (samples, test databases, screenshots with emails).
• Provide a contact point for data subject requests.

3. DSA and seller transparency

The Digital Services Act requires platforms that allow distance contracts with consumers to identify professional sellers (the “know your business customer” principle) and to make it clear who sells what. For you this means onboarding requires verifiable identification data before you can get paid.

In practice, before publishing you complete seller onboarding and identity verification through the payment provider: only then do your products become purchasable. It is the same step that makes your profile credible to buyers.

• Use a real, up-to-date legal name and contact details.
• Describe the licence, technical requirements and package contents precisely.
• Answer product questions: transparency reduces refunds.

4. VAT and digital services in the EU

Digital products sold to EU consumers are electronically supplied services: VAT applies based on the buyer's country, not the seller's. Businesses handle this through the OSS (One Stop Shop) scheme or, when the sale happens through a platform, according to the tax role the platform takes on.

On SoftwareBay tax calculation at checkout is handled at platform level and payments go through Stripe Connect. The platform commission is 12% per transaction, with no fixed fees. Tax rules change by country and status (private individual or VAT-registered business): for your specific situation, talk to your accountant.

5. Right of withdrawal on digital content

For digital content supplied without a physical medium, the EU consumer loses the right of withdrawal when performance begins with their express consent and acknowledgement of losing that right. In practice: the instant download after purchase is the moment this happens.

The purchase flow and the conditions are documented on the dedicated EU withdrawal page, so the buyer knows what to expect and you get fewer disputes.

6. Prepare a package that converts

Package quality affects sales and refunds more than the description does. A tidy ZIP with a README, a licence and a readable structure is shown to the buyer before purchase and signals reliability.

• Clear folders, no system files or absolute paths.
• A README with installation, requirements and a version changelog.
• An explicit licence file (personal use, commercial, extensions).
• Real screenshots and, for 3D assets, a preview model.

7. Payments and payouts

Buyer payments are processed by card or PayPal through Stripe. The seller connects their account with Stripe Connect: the amount is split automatically, 88% to the seller and 12% to the platform, with transfers following Stripe's payout schedule.

Before publishing, complete the account connection: until payment setup is finished, your products cannot be purchased.