# Sell Digital Products and Services on WooCommerce (2026): Payments, VAT, Subscriptions

> Mark products Virtual or Downloadable, then add a payment method. With a Merchant of Record plugin, VAT, sales tax, invoices and subscriptions are handled for you.

Source: https://agentaos.ai/answers/sell-digital-products-woocommerce (canonical HTML page). Publisher: AgentaOS (Aristokrates OÜ, Estonia).

## How do I sell digital products and services on WooCommerce?

“I sell courses and setup packages on WooCommerce. Who handles VAT for buyers abroad, and how do I sell subscriptions?”

**Mark each product Virtual or Downloadable, then add a payment method that suits digital sales.** WooCommerce sells the product; the payment method decides who handles each buyer’s VAT, the invoice and chargebacks. The AgentaOS plugin makes AgentaOS the Merchant of Record for every sale and adds subscriptions, refund requests and invoices, without extra plugins.

## How do I set up a digital product?

In the product editor, select **Virtual** for a service or online access, and **Downloadable** for a file. WooCommerce then skips shipping and sends download links after payment. [WooCommerce guide to digital products](https://woocommerce.com/document/digital-downloadable-product-handling/).
Sell productized services as fixed packages with a set price and scope, for example an onboarding session or a setup package. Custom or per-client work is a poor fit for a fixed checkout and is not allowed under the AgentaOS [terms](https://agentaos.ai/terms).

## Who handles VAT and sales tax?

With a plain card processor, you are the seller: you register for EU VAT (through the One-Stop Shop), track US sales tax thresholds, issue invoices and answer chargebacks.
With a Merchant of Record, the provider is the seller of each sale. It adds the buyer’s VAT or sales tax at checkout, files it, issues the invoice and handles chargebacks. Turn off WooCommerce’s own taxes, or buyers pay tax twice. See [EU VAT from outside the EU](https://agentaos.ai/answers/eu-vat-selling-from-outside-the-eu) and [US sales tax on digital products](https://agentaos.ai/answers/us-sales-tax-digital-products).

## What does the AgentaOS plugin add?

- **Checkout**Card, Apple Pay and Google Pay, and bank transfer for EUR, on the AgentaOS checkout. The method only appears when every product in the cart is virtual or downloadable.

- **Subscriptions**Monthly or yearly plans with free trials, billed by AgentaOS. Each renewal becomes a paid WooCommerce order; customers cancel in My Account. No subscriptions extension needed.

- **Refunds and disputes**Request a refund from the order screen; a dispute puts the order on hold.

- **Invoices**The buyer’s AgentaOS invoice on the order, for you and your customer.

- **Local currencies**Stores priced in MKD, RSD, ALL or BAM are charged in EUR or USD.

## Where does AgentaOS fit?

The plugin is free and made by AgentaOS. It is in review at WordPress.org; until it is listed, write to [contact@agentaos.ai](mailto:contact@agentaos.ai) for the plugin file. You need an AgentaOS account and a store on https.
Selling from North Macedonia? See the [WooCommerce payment gateway guide for North Macedonia](https://agentaos.ai/answers/payment-gateway-north-macedonia).

## Common questions

**Can I sell digital products on WooCommerce without a plugin?** Yes, WooCommerce sells virtual and downloadable products on its own. You still need a payment method, and you handle VAT, sales tax and invoices unless that method is a Merchant of Record.

**Do I need the WooCommerce Subscriptions extension?** Not with AgentaOS. Subscriptions are built into the AgentaOS plugin and billed by AgentaOS.

**Can I sell services on WooCommerce?** Yes, as virtual products with a fixed price and scope. AgentaOS accepts productized service packages, not custom per-client work.

## Sources

- [WooCommerce: digital and downloadable products](https://woocommerce.com/document/digital-downloadable-product-handling/)
- [AgentaOS tax](https://docs.agentaos.ai/mor/tax)
- [AgentaOS terms](https://agentaos.ai/terms)