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VAT in the EU and Ecwid billing

Starting on January 1, 2015, the European Union has introduced updated regulations surrounding VAT taxation and the sale of digital services to consumers in the EU. Previously, tax rates were based on the location of the supplier. As of January, tax rates are based on the location of the customer. The new rules affect all digital content sold on the web, including music, videos, e-books, applications and software. Ecwid’s online shopping cart is considered a digital service and thus we are compelled to comply with these rule changes.

If your base of operation is in one of the 27 EU-member states, then please note that your business is affected by this change. As a result, at the moment, Ecwid is adding the applicable, EU country-specific VAT rate to your subscription fee.

How will Ecwid charge VAT for EU clients?

Ecwid plan prices for European customers are updated to include VAT, which is calculated based on your home country VAT rate (currently ranging from 15-27%). Your country is automatically detected by Ecwid based upon your IP address. If this information is incorrect, you can edit your country from the Ecwid admin, in Settings → General → Store Profile or in My profile → Billing and plans. VAT will be adjusted accordingly.

All pricing and billing pages within Ecwid are updated to clearly display and reflect the new rates.

What if I am a B2B provider and have a VAT ID number?

When providing services on a business to business basis, Ecwid is not required to assess and collect VAT. As long as a valid VAT number is provided, you may reconcile VAT on your own. If you are an EU company, possessing a valid EU VAT number, please add your number in the Ecwid control panel as soon as possible. Upon acceptance of this ID, Ecwid will zero-rate the VAT.

To submit your merchant VAT ID to Ecwid:

  1. From your Ecwid admin, go to My profile → Billing and Plans page.
  2. Click Enter your VAT ID to waive tax.
  3. Ecwid will validate the ID with the official VAT ID database.
  4. Upon approval, save the VAT ID.

Enter your VAT ID as you upgrade to a paid plan, and you won't be charged the tax.

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