Thank you for your replies!
It’s a shame that this functionality doesn’t seem to be implemented on itch.io yet. As a seller, I would personally be happy to increase my revenue sharing with the platform if this EU VAT handling issue were resolved. I believe this improvement would encourage more professional buyers to make purchases here. From all the platforms where I sell my assets, itch.io is actually the second-best in terms of revenue for me, so I want and I will stay and would be great to see it improve further.
As feedback to the itch.io team:
I strongly recommend implementing proper EU VAT handling. Many other digital platforms already support this. The typical process looks like this:
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At checkout, there is a field for buyers to enter their VAT ID.
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The system validates the VAT number, checks if seller setted up correctly their EU VAT in their account settings, and checks if both buyer and seller EU VAT IDs are valid through the VIES .
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If the buyer's VAT is valid and the seller is also VAT-registered, the VAT charge is automatically changed to 0.
With the growing number of freelancers and indie studios in the EU, I think this feature will become increasingly important.
Thanks again, and I really hope the itch.io team will consider adding this functionality in the near future.