Just a quick note (sorry for cluttering your inbox), but I enabled ‘automated taxes’ for the direct digital products (i.e. logos and audiobooks) that I’m selling via the Made By Meghan site this morning. There is a threshold in Canada for collecting GST so I hadn’t bothered (though the Kickstarter last January is likely going to be factored into that, so I really should have been charging GST for all of 2023 – yikes). I thought there was a threshold for VAT as well, but – and I will confirm this with my accountant – apparently, that has changed and every single sale (digital goods or not) is now subject to VAT in the EU. Sigh.
The store is now set up to calculate the taxes (GST/VAT, etc) automatically based on YOUR location. It is added to the cost, so for example, an audiobook will now be $10CDN+applicable tax but clearly shown/noted in the cart. Still all Canadian currency, so the final charge on your credit card, etc, will show the price after the exchange rate is applied.
Anyway, just an FYI! I still have to sort all my end out with the accountant (and where/how I’m going to find time to keep track of it all), but I spent hours last night and this morning reading up on it and it’s pretty clear I should have been charging VAT to my EU readers right away.
Not sure this affects many of my American readers, BTW. Again, the taxes are (supposed to now be) automated based on your location. Though the flat GST rate (5%) might be applicable to all (hard for me to test since I’m in BC).
The T-shirts, etc, purchased via Amazon are a separate thing. Amazon takes care of collecting the tax on those.
Happy Monday! [I can’t wait to get back to full-time writing … hopefully, that’s still going to be possible one of these days?? 😁]
