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Does itch.io apply proper sales/vat tax on ebooks ?

A topic by xezta created Sep 14, 2021 Views: 304 Replies: 2
Viewing posts 1 to 3

itch. Io allow sellers to sell digital products including ebooks which has reduced sales tax/VAT compared to other digital products. For example United Kingdom has zero percent VAT on ebooks but on games or other digital products VAT is 20 percent.

 How much VAT  itch. io is actually collecting on ebooks, are you treating ebooks separately or same as other digital products which has higher tax rates. Thanks 

Moderator

I’m not sure about the answer, but are you sure ebooks are meant to have 0% VAT in the UK? Last time I checked I remember books being at 0%, but not sure if ebooks are fit in the same category.

I’d love to take a look if you have a link about it.

(+1)

Itch.io has UK VAT obligations, this video from DHL will explain


In the ebook case because it has no "legislative" meaning to UK it currently stands at 0% which means itch.io should not be  making people pay 20% VAT.

a more detail look can be found here: https://www.dlapiper.com/en/us/insights/publications/2020/12/uk-vat-changes-sale...

i could be wrong and UK already updated to add Ebook for VAT at 20% but i only saw changes for july 2021

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