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 28 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.
In this article:
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 in the Ecwid Control Panel → Settings → General → Store Profile tab, or from the "Change country" drop-down menu during the billing process. VAT will be adjusted accordingly.
All pricing and billing pages within Ecwid are updated to clearly display and reflect the new rates.
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.
In order to submit your merchant VAT ID to Ecwid, please:
- Log in to your Ecwid control panel.
- Hit your name in the upper right corner → Billing and Plans page.
- Click on "Set your VAT ID number" to enter the ID.
- Ecwid will validate the ID with the official VAT ID database.
- Upon approval, click to save VAT ID in merchant profile.
You can also enter your VAT ID on the checkout page during the process of paying for an Ecwid plan. This process will follow the same steps as detailed above, automatically adjusting the order being placed, and saving the ID in the store profile for future.