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Posted Thu, 04 Jan 2024 22:57:10 GMT by ElleJH
I’m a Canadian Sole Proprietor that sells a digital product that isn’t classified as digital—as I understand it. I have an ecommerce site that provides mockups---a customer chooses something and then I create a unique product for them. There’s much back and forth, and I deliver the final digital product via email. I’m also an author with another ecommerce site, but I think I understand the VAT implications there—maybe. After reading a ton of stuff that makes things even less clear, I’m hoping someone can explain the first situation to me like I’m 5. I don’t fall into the UKs definition of “digital” and I don’t ship a physical product. Do I charge VAT—yes or no? If I do, how much? As far as ebooks and paperbacks go, I think they’re zero-rated, and I don’t have to charge VAT. Please verify that I have the right understanding there. However, if I ever decide to sell audiobooks, will I need to charge VAT for them and if so, how much? Hopefully, a few succinct replies will spare me another 10 hours or so of tax law torture. :) Thank you!
Posted Thu, 11 Jan 2024 09:03:43 GMT by HMRC Admin 25 Response
Hi ElleJH,
If you are selling digital services to consumers in  the UK from overseas then there would be a requiremnt to register for VAT in the UK and charge VAT at 20% to your customers.
Please see the definition of digital supplies here:
Definition of ‘electronically supplied’
If your supply is an electronic supply but not a 'digital supply' as per the above guidance and you are supplying this from overseas then there would be no VAT implications.
If you are supplying ebooks and paperbacks then these would normally be Zero rated for VAT purposes.
Please see the guidance here:
E-publications
Thank you. 
 

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