Understanding VAT with Printful

Dealing with taxes might seem like a daunting task at first. But there’s no need to worry, it’s a process you only have to understand once and there are plenty of resources to help you get started.

00:00:27 What is VAT?
00:04:24 When to apply VAT rates?
00:04:39 You’re based in the EU and haven't reached the domestic sales threshold for your country
00:06:06 You’re based in the EU and have reached your country’s VAT threshold
00:06:48 You’re based in the EU and have reached the distance selling threshold
00:08:24 You’re not based in the EU and sell your products to customers in the EU
00:09:41 How to submit a VAT ID to Printful?

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VAT stands for Value-Added Tax. VAT applies to almost all goods and services that are bought and sold in the European Union. It’s placed on each stage of the supply chain. That’s why fulfillment, sales, shipping, and services all have VAT applied to them.

Keep in mind that you might be liable to collect VAT from your customers on all your orders shipped to the European Union. This means that Printful charges you VAT for all orders shipped to the European Union.

Registering as a VAT payer might feel overwhelming, but don’t worry, there are a lot of tools to help you. You can check out services like VATGlobal, FBA heroes, and SimplyVAT for VAT questions and setup help.

#printful #printondemand #vat

[PrintfulCustomPrinting]

00:00:27 What is VAT?
00:04:24 When to apply VAT rates?
00:04:39 You’re based in the EU and haven't reached the domestic sales threshold for your country
00:06:06 You’re based in the EU and have reached your country’s VAT threshold
00:06:48 You’re based in the EU and have reached the distance selling threshold
00:08:24 You’re not based in the EU and sell your products to customers in the EU
00:09:41 How to submit a VAT ID to Printful?

[CreateYourBestLife]

I recently had my first sale from EU and was very surprised that Etsy charged my customer VAT and Printful charged me VAT as well. Pritful told me that they are obligated to charge me VAT even if my customer already paid it! So basically this Value tax was charged twice. The solution is either not to sell in EU at all, or raise prices.

[cosmotk]

Domestic selling threshold, distance selling threshold, omg so many rules for such a small business..

[alantuttphotography]

A very complex topic, indeed. Since I'm based in the US and make very few sales to customers in the EU (just getting started), it sounds like I should simply not sell to anyone in the EU countries. It's not worth my time to register with all these countries in the off-chance I happen to make a sale to someone in that country.

[MasculinityMindset]

I do not pay VAT when I buy from Amazon Germany, Italy, Spain or UK? Or if I do, It's not like an addition at the checkout for the customers. It's a huge negative when we are trying to sell products for a few dollars.

[ascensioninspiredclothing]

Hi Printful 🙂Thanks for your video! I just want to confirm a few points. I'm based in the UK, about to soft launch and want to be able to sell worldwide. But firstly I need to confirm with you that - I am not obligated to register for any tax be it VAT/GST etc as (Printful themselves) will collect it on my behalf. It is ONLY once I prove my business model, scale and then reach those tax thresholds in those countries that I will then need to register to collect taxes myself. Then, I will need to submit those tax ID on the Printful dashboard to inform Printful they need not now collect taxes for me. Many Thanks ⭐

[amirkakavand]

I literally understand nothing about taxes. Why should it all be so complicated? :(

[instantplayerclassicjh]

What if the marketplace does that the VAT charge automatically like etsy are you still gone charge us VAT on orders ?

[bluecloud]

So question does this involve with Caribbean businesses too with vat ?? Like the Bahamas 🇧🇸

[calm-corder]

When I have an order fulfilled for my shop by printful. Do I pay VAT on the order and then have to pay (or account for) VAT again based on retail price when the customer buys the product. In these 2 stages of the order, Do I essentially have to pay VAT twice?

[queennine]

Lots of changed in Etsy and I don't see anything for VAT in my shop under Billing or Finance. Where is VAT? Thanks

**Update looks like you have reach a certain threshold /sale volume to register for a VAT. Had to watch the video again to let it sink in. This is why I can't find VAT anywhere in my store.

[freelyashley]

Thanks for the video. Vat is very confusing to me. I am justing to starting to sell through POD. Currently I just sell to the US and Canada but im not making many sales and I would like to open up my sales channels worldwide with the exception of Europe. Where can I find a list of European countries that have VAT? I want to manually make a shipping profile on Printful and Printify.

[mehdiahouch]

Hi! being that I've just started :
- I am based in EU
- I want to sell in EU and outside
- I didn't reach treshhold (no sells yet)
- No VAT ID yet
- Printfull charges VAT to me obviously since I don't have VAT ID
- Store is opened via Woocommerce
Woocommerce charges a tax to customers in Europe once they checksout on my website, does this mean it is the VAT that you've explained which I need to charge to customers in Europe ? that means I don't have to charge it again manualy or calculate it since it is done by woocommere !

[melonstar]

Thanks for the info. Does it work the same for the UK now we're not in the EU?

[scampolidassenza]

Hi Hannah, I'm based in the UK but I haven't reached the domestic sales threshold for the UK. If the order comes from a EU country and is fulfilled in the EU, do I need to collect VAT from the customer? thanks

[luisrubio]

I do not live in the US or EU and I do not have a tax ID nor have I configured the tax rate, but if in a given case I make some sales to those mentioned areas, am I committing a crime? Could I go to jail?

[cpg]

Blimming problem. UK and Irland are now split into 2 on VAT

[FireJach]

There should be a table with all of these

[garavonhoiwkenzoiber]

when a customer in the uk buys a framed print from my (also in the uk) etsy store, does printful charge me for the frame print or for the frame print + vat?
do I then add that to the cost of my item? ie if sells for £100, I now sell it for £120?

[TsukiNY]

A very complex video, thanks, exactly what I was looking for.
Only one info missing - how do you cope with products that are fulfilled in China? Ahops like Amazon collect the Vat (for orders below 150eur) and then submit all at once via IOSS. Do you have something like this? Or does a customer from EU who orders POD shoes (order below 150Eur) pay the Vat after arrival of his order?? Yhis is very uncomfortable and stresses me as a customer as well as a seller...