ElleJH
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Digital products that the UK doesn't classify as digital--HELP!
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!