What do I need to do to charge the correct VAT rate?

If you're trying to get a handle on your VAT obligations, check out VATGlobal and SimplyVAT for some helpful resources.

Here’s a quick rundown based on where you’re located and how much you sell:

For EU-based Sellers:

1. If You've Hit Your Country's Sales Threshold:
   • You’ll need to register as a VAT-collecting entity. For instance, in Germany, the threshold is €12,500. If you're registered in Europe, contact your local tax office for more guidance.
2. If You Haven't Reached the Sales Threshold:
   • You don’t have to register as a VAT payer, but you can if you want to. Just keep in mind that we will charge VAT on every order fulfilled for EU member states, which is a legal requirement. Adjust your pricing accordingly to cover these additional costs.

For Non-EU Sellers Selling to EU Customers:

• You may need to register as a VAT payer if you’re selling to customers in Europe. VAT is ultimately paid by the end consumer, so you can usually claim it back. Decide which country to register in, and once you're registered, send us your VAT code. This way, we'll charge 0% VAT on orders going to EU member states that we fulfill. Without a VAT ID, we’ll have to charge VAT on those orders.

Once You're Registered:

• Familiarize yourself with VAT reporting and invoicing requirements in your country. If anything is unclear, it's a good idea to consult a licensed accountant.
• Make sure to collect VAT on orders shipped to EU member states.
• File VAT returns with your tax authority, deducting VAT incurred in your supply chain.

Important Checkout Information:

• Ensure that VAT charges are displayed separately during checkout. If you're using Shopify, this feature is built in—check out their documentation for details.

Remote Selling:

• Keep an eye on the "remote selling" threshold, which is set at €10,000 as of July 1, 2021. If you exceed this amount in sales during a fiscal year, you’ll need to register as a VAT payer under the Union scheme (OSS) or in the specific member state.

If you need more tailored advice, definitely consult with a licensed accountant who understands your local tax laws!