Payhip and Digital VAT part 2

And here's our next post about VAT options within Payhip! We know VAT is rarely a favourite subject but we're keen to share and help designers who have a store on Payhip, and encourage more to consider it.⁠

Image Description: the words "Payhip & digital VAT - part 2" are written across the crown detail of my Erica pattern.

When VATmoss first came into being, the rates across the EU were pretty consistent. Since then, many countries have realised that charging such high rates is punitive and is having a negative impact on digital sales and small creators. Their aim, after all, was to target the tech giants - they didn't think about the millions of nano digital businesses.⁠
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In light of this, governments are reviewing their rates. The rules aren't easy to follow by any means, but eBooks are treated pretty consistently throughout Europe and many countries now have a lower rate for them - they're zero rated in the UK and Norway, for instance.⁠
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What counts as an eBook or ePublication is still up for debate but if you have an ISBN, or it's a collection or book of some kind, or is a reasonable chunk of pages, then Payhip has an option for you!⁠
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Edit Digital Product > Advanced Options > "Product is an ebook"⁠
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This option can make the difference between 22% VAT being charged or 9% VAT, or 20% and zero. Regardless of whether you set your store to have VAT added on top of your price or included in it, ⁠it's going to ensure that your customers, or you, are not paying more than is needed.⁠
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Use this option wisely, it won't help anyone to abuse it. Doing some research on what is classed as an eBook, or getting advise from an accountant, is in your best interests.⁠
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Currently we're in the process of getting all Woolly Wormhead patterns ISBNs, the collections already have them, purely for accounting purposes. Who knew that single knitting patterns could fit the ISBN criteria? Exactly! Not all knitting patterns will, but it's worth looking into, regardless of the size of your business.⁠

eta/ this post was updated on 11th March 2022 with a new post graphic. The image shows the crown of my Erica pattern.