Paying taxes / VAT

In this article:

Role of Sellfy in taxes

How to apply taxes to product prices

How to get a tax report

Do I need to have a registered company to pay tax?

How to choose the countries which pay tax?

How to export the VAT MOSS report

Role of Sellfy in taxes

Important! The United Kingdom is currently in a transition period to leave the European Union, which will last until the end of 2020. During this transition period, the UK will be treated as an EU Member for tax purposes. As a result, the MOSS reports for Sellfy stores will continue to apply VAT for UK customers.

Our role is to help you set up tax amounts for your products and to reflect those in your sales reports. However, Sellfy does not file taxes for you, so you'll need to report and pay taxes directly to your local tax authority. Watch our tutorial below for more information. 

Please contact your local tax authority to get the most accurate information about what percentage of taxes you need to pay for selling digital products (if at all) - this depends entirely on where you're located.

Note: We offer tools for European VAT MOSS reporting. You can find out more about the European VAT MOSS here: How does Sellfy handle the new EU VAT laws?

How to apply taxes to product prices

With Sellfy, you're able to apply taxes to your products in your Tax settings. To set up taxes for your store, watch our tutorial here or follow the steps below:

  1. Log in to your Sellfy Account
  2. Navigate to  Store Settings → Tax Settings 
  3. Select the tax amount according to your country or state

You may also choose whether the tax is included in the product price or if it's added on top of it. 

When you apply taxes in your store, we automatically calculate the tax amounts for each country/state and display them to the customer at checkout. 

How to get a tax report

We collect all the order data for you in the  Orders section of your Sellfy Account, including the product price, tax amount and customer's country of location. 

You can use the data from your Order history for tax purposes and submit the information to your accountants or directly to your local tax authority, depending on their requirements. 

To request your Order export navigate to Orders → Export → Request report

Note: The exported file is in.csv format and must be opened using the appropriate application to view it as a spreadsheet. Once you have downloaded and saved your Order export on your computer, open the exported file in Google Sheets, Microsoft Excel, or OpenOffice Calculator to display the data coherently. If you're using a Mac computer, you can use the Numbers app as well.

Do I need to have a registered company to pay tax?

Important! Law and regulation pertaining to tax and company registration can vary significantly from country to country. It is essential to make sure that your business complies with local legislation.

Sellfy does not impose any requirements on you regarding your business status or tax arrangements. You can create an account and sell products on Sellfy with or without a registered company.
Most countries will not require an official company registration for you to sell products. However, Sellfy advises contacting local tax authorities before you start selling to ensure that your business activities comply with tax laws and regulations specific to your country.

How to choose the countries which pay tax?

Note: If you are located in a European country and have checked the Don't allow purchases from European Union box in your Tax settings, customers located in Your country will still be able to purchase items from you. 

Typically, taxes are applied to products when sold to a customer who resides/purchases in the same country as the seller. For example, if your business is located in the US and you're selling to a customer within the US taxes will be applied to the product accordingly.

If you sell to customers from the European Union, you will be required to collect the VAT on the relevant product. Regardless of your personal or business location, this rule applies to every seller that is not based in the EU but sells products to customers that are in the EU. 

You'll need to send the VAT that your store accumulates to the respected countries in the EU on a quarterly basis.

How to export the VAT MOSS report

If you're collecting VAT in your store, you may be required to provide a quarterly tax report.

To export tax information specifically for VAT:

  1. Log in to your Sellfy Account
  2. Navigate to Store Settings > Tax settings
  3. Scroll down to VAT MOSS report
  4. Select the month(s) and year from the dropdown menu
  5. Click Export data

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