Etc

Paying VAT on Ravelry Sales

When I set up my Ravelry store, there was a thing about paying VAT. I just went with the default: customer covers VAT and didn’t think much of it. Last month, someone in Denmark bought one of my patterns and I saw that they ended up paying $0.75 more. When I realized it’s for VAT, I went and looked it up.

I learned that in 2015, European Union started charging VAT for sales of digital property. At the time, Ravelry didn’t have anything in place to remit VAT. There are options to do it yourself, but it was so complicated. Love Knitting (now Love Crafts) also offered a solution if you sell patterns through them instead of Ravelry. But all of this was from over 8 years ago. I kept searching and didn’t find much information from after that time, so I was confused about what the situation is now.

Eventually, I found out Ravelry will send an invoice every month where you pay VAT, along with any fees from your sales. I don’t know how I missed this before I spent all the time searching for answers. I just paid it through PayPal and it was so simple.

Hope this will help someone who was confused like I was!