How does Sellfy handle the new EU VAT laws?

In this article:

How do I comply with the EU VAT laws as a seller?

What does Sellfy do to help?

What does the VAT data export look like?

Further reading for VAT-related topics

How do I comply with the VAT rules as a seller?

On 1 January 2015, new EU VAT rules for digital products came into force. Since then, the European Union VAT for digital products is charged based on the country where the buyer is located, as opposed to the seller's location, as it was previously.

Essentially, as a seller of digital goods, you have three options:

  1. Register to pay VAT for every EU member state in which you sell.
  2. Register for the VAT mini one-stop shop scheme (VAT MOSS).
  3. Stop selling to the customers in the EU altogether.

The easiest way to comply with the new rules is to register for the Mini One Stop Shop scheme (VAT MOSS). For more information and a full list of MOSS registration portals, including one in your country, visit the European Commission website.

Important! This is not legal advice. Please consult your lawyer and/or accountant, who will be in a better position to advise you on your legal rights and liabilities.

If you choose to go ahead with VAT MOSS, you’ll only have to submit a single calendar quarterly return and VAT payment and the Member State will then take care of the rest, by sending all the “appropriate information and payment to each relevant member state’s tax authority.”

What does Sellfy do to help?

As of 1st January, Sellfy helps facilitate your compliance with new regulation via your Tax settings.

Advanced settings are available in your Sellfy account → Store Settings → Tax settings. You can:

  1. Enable tax in your store
  2. Choose to include the set tax in your product price
  3. Add tax to your store's shipping cost
  4. Choose to block sales for EU countries (to avoid VAT MOSS handling)

Note: Keep in mind, that you won’t be able to edit the VAT rates for EU countries, as we’ll do that for you and make sure that all the rates are up to date. If you have any questions on this, feel free to email into [email protected]

Following the European Commission requirements, we’ll store two non-contradictory identifiers of the buyer’s location, based on:

  1. The IP address
  2. Customer’s own choice of a country
  3. Credit card (or Paypal) information

Reports on your customers' location and the precise amount of taxes to pay will be available in the  Orders → Export.

What does the VAT data export look like?

Sellfy collects information about the VAT MOSS of your store and provides this data to you for tax purposes. The report is divided into quarterly periods that are accessible to you at any time in you Sellfy account.

To export your VAT MOSS report, pleasee follow the steps below:

  1. Log in to your Sellfy Account
  2. Navigate to Store Settings → Tax settings
  3. Scroll down to VAT MOSS report
  4. Select the quarterly period and year
  5. Click Export data

Further Reading

Here are some helpful links for you to read further about these new regulations affecting your business practices.

The Guardian article on New EU VAT regulations
European Commission website
EU-VAT GitHub repo with relevant links

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