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Where Taxpayers and Advisers Meet

Tax on selling digital products

schneider
Posts: 1
Joined: Tue Jul 03, 2018 4:28 pm

Tax on selling digital products

Postby schneider » Tue Jul 03, 2018 4:34 pm

Hi there,

I am new in the business world. I am currently working on a number of digital products (mostly fitness related) I am looking to start selling later on this year. I am UK based, what I have understood is I would not have to pay taxes in this country to a certain profit point per year? Is that correct?

Also, how would I have to pay taxes on selling my products to European Union, the United States and the rest of the world?

GlobalTaxAdviser
Posts: 626
Joined: Fri Dec 05, 2014 1:18 am

Re: Tax on selling digital products

Postby GlobalTaxAdviser » Wed Jul 04, 2018 8:19 am

Hi

You would have to pay tax where you are resident ie UK

Secondly if you are selling to consumers digitally to Europe then you would have to charge VAT and register under VAT MOSS

Kind Regards

GTA

victor07
Posts: 1
Joined: Thu Sep 13, 2018 9:50 am

Re: Tax on selling digital products

Postby victor07 » Mon Oct 15, 2018 9:58 am

Hi there,

I am new in the business world. I am currently working on a number of digital products (mostly fitness related) I am looking to start selling later on this year. I am UK based, what I have understood is I would not have to pay taxes in this country to a certain profit point per year? Is that correct?

Also, how would I have to pay taxes on selling my products to European Union, the United States and the rest of the world?
Hi there,

If you sell via eBay and Amazon you would need to register for VAT only after you hit £85,000 UK threshold. If you are already selling into countries in the EU, then you would need to find out if you have surpassed that threshold for that particular country. As this could be quite a large task you would need to have records of the sales you sold in the EU country. So for example if you sold your products into Germany, their VAT threshold is EUR 100,000. Now lets say your sales have gone beyond that figure then you need to be VAT registered ASAP as this is now a compliance issue.

There are various software's out there that can help with this. CBV software in particular specialises in cross border VAT compliance !


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