What is VAT?
VAT, or Value Added Tax, is a type of consumption tax that is assessed on goods and services. It is a tax that is levied on the value added to a product or service at each stage of production. For example, a manufacturer of a product will pay VAT on the cost of the raw materials and components used in the making of the product. Then, when the product is sold to a retail outlet, the retail outlet will pay a VAT on the sale price. The same works for digital services.
Online marketplaces, such as Flirtback, collect VAT from customers when they purchase goods or services in order to comply with local laws and regulations. In the case of Flirtback, the collected VAT is then submitted to their local tax authority. This helps ensure that their customers are paying the appropriate amount of tax on their purchases.
I’m a creator, should I pay VAT?
The following graphic allows you to see what is applicable to you in terms of VAT obligations.
When should I register for VAT?
If you are an online content creator selling goods or services on commission, you will need to register for VAT if your annual turnover of taxable supplies is more than the registration threshold of your country. The registration threshold varies from country to country and can range from €10,000 to €50,000. Therefore, it is important to check the applicable threshold for your country before registering for VAT. Additionally, some countries require you to register for VAT regardless of your turnover. It is important to research the laws and regulations in your country to ensure you are compliant.
What VAT rates are being used on Flirtback?
- Austria: 20%
- Belgium: 21%
- Bulgaria: 20%
- Croatia: 25%
- Cyprus: 19%
- Czech Republic: 21%
- Denmark: 25%
- Estonia: 20%
- Finland: 24%
- France: 20%
- Germany: 19%
- Greece: 24%
- Hungary: 27%
- Ireland: 23%
- Italy: 22%
- Latvia: 21%
- Lithuania: 21%
- Luxembourg: 17%
- Malta: 18%
- Netherlands: 21%
- Poland: 23%
- Portugal: 23%
- Romania: 19%
- Slovakia: 20%
- Slovenia: 22%
- Spain: 21%
- Sweden: 25%
- United Kingdom: 20%
