Understanding how VAT works in the EU can help you manage your business more confidently, especially if you sell across borders. This article explains the key VAT rules Printful follows and how they might affect you.
Why VAT applies to your orders
Printful is registered as a VAT payer in the EU and must comply with EU VAT laws. These laws help ensure VAT is properly collected on cross-border sales within the EU and on imports from outside the EU.
Since July 1, 2021, the EU has used two VAT systems for cross-border sales:
- One Stop Shop (OSS): For sales between EU countries
- Import One Stop Shop (IOSS): For imports into the EU from outside the EU
You can learn more about these systems here.
How VAT is charged on your EU-bound orders
We’ve broken this into a simple table so you can easily find your situation:
| Your VAT registration status | Fulfillment location | Shipping destination | VAT charged |
| Not VAT-registered in the EU | EU (Latvia or Spain) | EU country | Destination country’s VAT rate |
| Not VAT-registered in the EU | Outside the EU (e.g., US) | EU country | - Under €150: Destination country’s VAT rate - Over €150: 0% VAT |
| VAT-registered in Latvia | Latvia | Any EU country | Latvia’s VAT rate |
| VAT-registered in Latvia | Spain | Spain | Spain’s VAT rate |
| VAT-registered in Latvia | Spain | Any EU country except Spain | 0% VAT |
| VAT-registered in Spain | Spain | Any EU country | Spain’s VAT rate |
| VAT-registered in Spain | Latvia | Latvia | Latvia’s VAT rate |
| VAT-registered in Spain | Latvia | Any EU country except Latvia | 0% VAT |
| VAT-registered in another EU country (not Latvia or Spain) | Latvia or Spain | Latvia or Spain | Latvia’s or Spain’s VAT rate (based on location) |
| VAT-registered in another EU country (not Latvia or Spain) | Latvia or Spain | Any other EU country | 0% VAT |
VAT on services like digitization
VAT also applies to services we provide; this includes digitization for embroidery files. When you add digitization to an order, VAT is charged on the entire order amount (product + shipping + digitization).
How VAT works for marketplace orders
If you sell on marketplaces like Etsy, the marketplace collects VAT from the customer. However, we still charge VAT on your order from us, because legally, these are separate transactions:
You buy a product from us (Printful → you)
Your customer buys a product from you (you → your customer)
This applies to both EU and UK orders—the difference is which VAT rules are used.
For EU-bound orders: The rules in this article apply.
For UK-bound orders: The marketplace VAT process is the same, but UK VAT rules apply instead. Read more about UK VAT rules here.
Additional resources
- How to submit your VAT ID to Printful
- How to configure VAT on your platform or marketplace
- EU standard VAT rates
Still need help? Our Support Team is here for you—reach out anytime through our contact form or start a chat with us.