On July 1, 2003, the European Union (EU) began requiring U.S. and other firms located outside the EU to pay value added tax (VAT) on the sale of goods and services digitally delivered to individual consumers in EU Member States. The VAT on E-Commerce Directive amended earlier EU tax legislation, changing the rules for VAT collection on digitally delivered products. EU firms are no longer required to pay tax on exports from the EU. Non-EU firms are now required to pay a tax on their sales to individual consumers within the EU (imports into the EU).