Do I need to add Tax?

This article contains general information for you to consider. You should always contact your local tax authority or tax advisor for the correct legal advice and for more information.

VAT stands for value-added tax. It’s a tax based on the consumption of goods and services that is commonly found in the EU and select other regions of the world. VAT is also known as JCT, GST, SST, or QST in some countries. VAT may be charged to customers on their purchases.

Baphomart is not recognised as an OMP in the UK because it is not responsible for managing orders, authorising payments or handling shipping. As such we are not required to handle VAT on behalf of our sellers. Where necessary we encourage sellers to include their VAT within their product pricing.

UK Sellers: Making Tax Digital rules

The HMRC requires most UK businesses with a taxable turnover above £85,000 to be VAT registered and to follow the rules for Making Tax Digital for VAT. These rules include:

• Keeping digital VAT records
• Signing up for Making Tax Digital for VAT
• Using software compatible for Making Tax Digital to submit VAT returns

Learn more about Making Tax Digital.

Baphomart can’t provide tax advice. We recommend that you speak to a tax advisor with experience in UK VAT or reach out to HMRC directly for more information.

Am I required to charge tax on my physical products?

For many countries the applicable VAT rate depends on:

• the nature of what is for sale
• the country in which the supply of goods and services is taxable with VAT
• if you have reached your tax threshold and need to register for VAT

For information on VAT requirements in your location, please consult your local tax authority or a licensed professional.

Am I required to charge tax on my digital items?

If you sell digital items to buyers in certain countries you are required to charge VAT no matter where your shop is located. If you sell an item to a buyer in a country where you are required to charge VAT on digital items, you are responsible to collect it. We recommend that you speak with a professional about the tax laws in your location.

What should a seller invoice to a buyer look like?

Some businesses may need to provide an invoice when supplying goods or services. For further details on the invoice and these requirements, please find more information on the European Commission’s website.

Order invoices are available to download from the Orders tab in the Seller Dashboard. If you have a VAT number you can add it to your invoice automatically but going to Dashboard > Settings > Store and including it in the tax field, and selecting save.

Selling to UK/EU buyers from overseas

If you’re a seller located outside of the United Kingdom (UK) but you sell to UK or EU buyers, you might be considered an “overseas seller”.

Her Majesty’s Revenue & Customs (HMRC) defines an “overseas seller” as a seller who:

• sells goods already in the UK at the point of sale to UK consumers
• is based outside the EU and sells goods to a UK consumer, and then imports them into the UK
• sells goods located in another EU member state to UK consumers

To learn more on this please click here.