Payhip and Digital VAT part 3

You may feel that this next post in our series on #Payhip and #VATmoss doesn't apply to you if you're not a designer, creator or store owner based within the EU, but we suggest having a read through anyway as it could be mighty helpful.⁠

Image Description: the words "Payhip & digital VAT - part 3" are written across the crown detail of my Arkanoid pattern.

Digital VAT is a B2C tax, meaning there doesn't need to be any VAT charged between businesses. Furthermore, VATmoss, or digital VAT, can't be claimed back or offset in the same way that tangible VAT can, so once it's collected that's it. Given that many platforms over or incorrectly charge digital VAT, you can maybe appreciate why we thought these tips could be of use!⁠
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This option is a lesser known option within the Payhip store and it won't cost you anything at all but it could earn you more sales.⁠
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Account > Account Settings > Taxes > "Redeem EU VAT company numbers"⁠
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What this does is simply allow your customer to add their VAT number, if they have one, so that VAT then isn't charged.⁠
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It doesn't matter whether you've set your base price to include VAT or not - if Payhip are handling the VAT then this option won't cost you anything but it could save your customer money, which is always a win.⁠
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Mostly though, it'll build goodwill. It'll save VAT registered businesses paying VAT that doesn't need to be paid.⁠ It's something Woolly always appreciates, and it nearly always results in repeat purchases. And it's just one check box within your store settings!⁠
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Ravelry haven't enabled an option like this despite EU law and Etsy are even further behind in their handling of digital VAT, so this is definitely a win for Payhip.⁠
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VAT is neither straightforward or easy, yet you don't need to be an expert to implement these useful steps, as Payhip have done all the work and made it easier for you.⁠
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We hope these posts have been helpful, even if VAT isn't your favourite subject?⁠

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