The UK’s imminent departure from the EU (European Union) has left businesses across Europe struggling to understand how this change will affect them. For WordPress theme and plugin businesses, it makes EU VAT collection and payment even more complex than it already is. If you’re accounting for VAT on your own, you may be dealing with hundreds of invoices, difficult requirements for filing in each EU state member, and generally wasting plenty of time and money on bookkeeping. We’re here to break down the upcoming changes and explain what Brexit means for developers selling software to consumers or businesses in the EU. Let’s get started with the basics:
What’s the current state of VAT collection in the EU?
When selling digital products to consumers in Europe, you have to manage and collect the correct amounts of VAT rates from each and every one of your WordPress product sales. Your specific tax situation for the EU depends on where your customers are located and you’ll have to collect tax for each sale depending on whether you’re selling to businesses or consumers. Here are the different possibilities:
If your WordPress business is based INSIDE
Source: https://managewp.org/articles/18451/how-brexit-will-affect-wordpress-plugin-and-theme-sellers
source https://williechiu40.wordpress.com/2019/03/13/how-brexit-will-affect-wordpress-plugin-and-theme-sellers/
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