VAT stands for Value-Added Tax. It’s a consumption tax placed on goods and services at each step of the supply chain from production to sale.
VAT applies to orders that are shipped to a customer in one of the EU member states (based on the “ship to” address), as well as the United Kingdom (UK), Norway, Switzerland, and Liechtenstein, regardless of where the order is fulfilled from.
This means all orders shipped to the EU from any Printful location will be subject to VAT.
How VAT is calculated
VAT is calculated using the following formula:
(Printful product price - discounts + shipping price + services) × VAT rate
- Product price: What you pay for the product and fulfillment
- Shipping price: Delivery charge
- Services: Includes any extra fees, like digitization
Key differences between VAT and sales tax
- Where it applies: VAT is applied at every stage of the supply chain, while sales tax is only applied when the final customer purchases the product
- Calculation base: VAT is calculated based on Printful’s price; sales tax is usually based on the Printful product price or your retail price, depending on the state
- Shipping: VAT always applies to delivery charges; with sales tax, it depends on the state
Learn more about VAT charges on your Printful orders
- How is VAT applied to EU-bound orders?
- How will VAT apply to orders shipped to Europe?
- How is VAT charged on orders to the UK?
- Why am I charged VAT for orders shipped to Switzerland and Liechtenstein?
- Why am I charged VAT for orders shipped to Norway?
Learn more about your VAT obligations
- Do I need to charge VAT to my customers?
- Do I need to register as a VAT payer in each country I sell in?
- How do I comply with VAT regulations when selling to EU customers?
- Where can I get help with understanding my VAT obligations?
Learn more about obtaining and submitting your VAT ID
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