VAT on Kickstarter sales
  • murratw
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    VAT on Kickstarter sales

    by murratw » Sun Oct 19, 2014 10:31 am

    I just successfully funded my Kickstarter and have to ship half of my rewards to the EU. How does VAT work? I am solely based in the US. Do I need to collect VAT on the rewards? Will the backers have to pay when they receive the reward? My items will be at the most 20 euros.

    I want the best possible experience for the backers.


  • conkwe
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    Re: VAT on Kickstarter sales

    by conkwe » Thu Oct 23, 2014 4:07 am

    From my understanding and past experiences with shipping to EU, the customers usually cover the VAT. The VAT amount depends on the customs declaration value, so buyers prefer to have a lower invoice value to pay less. It would be best to get an answer from an EU customer though
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  • rgronow
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    Re: VAT on Kickstarter sales

    by rgronow » Tue Apr 07, 2015 10:13 pm

    Hi guys,

    I wanted to post this as a new thread but not able to yet due to lack of posts!

    I'm really confused about the whole VAT situation and kickstaters explaination of it. VAT is charged 20% in the UK.

    Can someone please clarify - after a successful campaign, will kickstarter automatically deduct 20% of the fund for VAT along with the other fees?

    for example:

    I initially raise £10,000 from the campaign.

    Will Kickstarter automatically take the following:

    5% fee = £500
    5% (just for the example) payment processing fee = £500
    20% VAT = £2000

    So, following the above fees and tax, Kickstarter will transfer to me £7000.

    Am I understanding that correctly?
  • kelly101
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    Re: VAT on Kickstarter sales

    by kelly101 » Wed Apr 08, 2015 4:04 pm

    The VAT thing doesn't apply to all of Europe, as far as I can tell just the UK. I would write to them and ask for a clarification - they usually respond within a day.
    You have to pay import duty on all items - but you should work this out and add it to your item cost. UPS allows you to pay the duty yourself - If I ordered something from the US and it got stuck in Customs I would be a very unhappy customer.

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