Questions about VAT are common
There is a saying that goes like "two things in life are inevitable - death and taxes". But is it really true in print on demand dropshipping? Questions about taxes are very common, so we want to help! In this blog post we will explain how VAT (value added tax) works when you partner up with Printseekers.
- VAT can be 0% or 21%, it depends on three things - where are you from; are you a VAT payer; where is the product shipped to. We send total invoices to our partners, where all orders in a specific timeframe are compiled. It is possible that some of these orders will have VAT attached, while others won't. You don't need to calculate anything, we do it on our side.
- The reason for all this is simple - according to our local and EU laws, there are situations when we have to pay local VAT for selling our products, and some situations when we don't. If we don't need to pay VAT to our country for a specific order, then we won't charge it from you as well.
VAT payer (European Union only) - in the EU, you can register your business to be a VAT payer, which can be beneficial for multiple reasons.
Your country - where are you / your business based. There are two main options, part of the EU, or outside.
Recipient country - what is the final destination of the package. Also, two different options, in or out of the EU.
Here are all the options, you need to match your situation with one of these. You can always use this list as a reference.
- You are in the EU, you are not a VAT payer, package sent to the EU: 21%
- You are in the EU, you are not a VAT payer, package sent outside of the EU: 0%
- You are in the EU, you are a VAT payer, package sent to the EU: 0%
- You are in the EU, you are a VAT payer, package sent outside of the EU: 0%
- You are not in the EU, package sent to the EU: 21%
- You are not in the EU, package sent outside of the EU: 0%
Note: this covers only business between you and Printseekers. How much you charge your customers, how you pay taxes to your country, whether you apply for VAT payer status and other tax related questions are up to you. This article is informative in nature, and if you need legal / tax consultations, we suggest to contact your government's tax consultants.
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