Tuesday 30 January 2018

Question and answer from ETSY regarding digital VAT and registered Norwegian sellers

Here is a question I sent to ETSY regarding registered Norwegian sellers and the digital item VAT, and the answer I got from ETSY: 


Hi !

I'm the team captain of the Made In Norway etsy team and a little question has come up in our forums last week. 
 
For sellers who sell digital items, we understand that ETSY takes care of collecting and returning the VAT to the correct authorities.
 
But what if a seller has filed a VAT ID on ETSY, and so is VAT accountable in Norway, does ETSY stops collecting the digital VAT for their Norwegian customers ? How does it work ? 

Thank you so much for taking the time to respond to this question.


 ............................................


Hi
Thanks for getting in touch with us. I'm happy to clarify how digital VAT works on Etsy. You do not need to file VAT on digital goods with your tax returns.
No matter where your shop is located, or if you have provided a VAT ID in your account, Etsy is required to collect VAT for digital purchases from buyers in a number of countries.
As a platform for digital items, Etsy is responsible for the collection and remittance of VAT on digital items purchased in Australia, the EU, India, New Zealand, Norway, Russia, South Africa, South Korea, or Switzerland. In all digital item cases, Etsy will take the VAT paid by the buyer and remit it to the relevant tax authorities.
Etsy will automatically detect if a buyer is in Australia, the EU, India, New Zealand, Norway, Russia, South Africa, South Korea, or Switzerland and add the appropriate VAT percentage for their region to the listing price if the item is a digital download. Buyers will see the VAT-inclusive price on each applicable listing, as well as in their cart, invoice, and purchase page.
I hope this helps! Please feel free to write back with any other questions you have.
All the best,
Raphaele
Etsy Support
https://www.etsy.com/help



Digital VAT on ETSY: https://www.etsy.com/help/article/26439032479
How VAT works on ETSY:  https://www.etsy.com/no-en/help/article/5524#Q3
 

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