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VAT issues for UK based sellers

A topic by strandgames created Sep 03, 2023 Views: 251 Replies: 2
Viewing posts 1 to 2
(1 edit)

This question is relevant to the "Direct to you" payout mode.

Firstly, there is no need to collect billing addressed for EU buyers anymore since the UK VAT MOSS has been abolished. https://www.gov.uk/guidance/register-and-use-the-vat-mini-one-stop-shop

Next, there is no longer a legal requirement to add VAT to sales from UK to the EU;

> If you are a business making supplies of digital services to UK consumers, those supplies are liable to UK VAT. If you make supplies of digital services to consumers outside the UK these are not liable to UK VAT. They may be liable to VAT in the country where the consumer is based.

[ref](https://www.gov.uk/guidance/the-vat-rules-if-you-supply-digital-services-to-private-consumers)

Note the words "may be liable". As far as I can see, they aren't (otherwise it would use the words "are liable").

I would like to discontinue charging my customers a fake tax.

ideas/thoughts on how to do this;

1.    uncheck the tax button and find a way to set different prices in different currencies. For example, i could set $5, €5, £5. and say there is £1 VAT in the £5. Is this possible?

2. A way to set tax levels manually for different regions. Currently this seems automatic?

Any suggestions appreciated. Thanks.


(1 edit)

You are mistaken on VAT not being required. You are still required to pay VAT, it is based on the customers location not your own.

I know it's based on the location of the customer, but that doesn't mean it is also required. For example a sale to someone in Australia would not incur VAT.

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