Why is VAT added to my product prices?

In the EU and within Europe, VAT is added to the price of all purchases based on a customers location. This tax is usually ranges from 19-25%. VAT is added dynamically to your product price based on which country the customer is located in. Only customers in the EU and Europe will be charged VAT. 

We're legally required to collect VAT for all EU and European customers. Customers outside these regions will see your prices as normal.

Your commission is based on the price you set, not the price the customer pays. The VAT collected is passed onto the countries collecting it, and is not kept by FlippedNormals.

Example:

  • You price your product at $10
  • US customers will see a price of $10 
  • Norwegian customers will see a price of $12.5 
  • German customers will see a price of $11.9
  • Your commission is based on the $10 you set as a price.

Do I need to do anything when you charge VAT on my products?

FlippedNormals is the merchant of record and we are the business selling the goods. As a European company, we are required to collect and remit VAT. In short, you do not need to worry about collecting any tax as this is handled by us. All you need to do is pay your personal/company taxes from the sales you make through us. 

HST/GST

As a European company, we are only required to collect and remit VAT. This means that if a Canadian or Australian customer buys any of your products through us, no HST/GST will be added to the sale and there will be nothing to report. In short, you do not need to worry about collecting any tax as this is handled by us. All you need to do is pay your personal/company taxes from the sales you make through us. 

VAT for Customers

If you're looking for clarification on VAT as a customer, click here.

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