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VAT and Taxes

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Hello everyone,

I have a small issue that I was hoping I get assistance in. 

I am working on a POD T-shirt business that is online-based.

The business is based and registered in the US. I use Printful as my printing company. I use Squarespace for the website that includes a shop and selling page.

When a customer in Europe orders a product, how does the VAT come into play?

Printful already charges me VAT to fulfill and ship the order the European countries.

Should I add the VAT price to the final price on SquareSpace and have them pay 0% VAT in this case? Or manually add VAT (according to each EU country) on checkout and this will be added to final price later on?

For example, let's say Printful charges 12$ to fulfill the T-shirt, 2$ for shipping to Germany and 2$ VAT to Germany. Therefore, I am being charged 16$ as the seller from Printful. Let's say the customer who buys my product gets charged 16$ for T-shirt (4$ net profit), 2$ for shipping (so I don't pay shipping from Printful out of pocket) and 2$ VAT (again so I don't pay it out of pocket), would that be enough and legal? Am I missing any step?

Who handles the VAT once it is payed?

Should I be registered for VAT in EU to be able to ship there?

I would really appreciate any help. Thank you!

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Your initiative in addressing VAT concerns for your online POD T-shirt business is commendable. Operating internationally with Printful and Squarespace adds complexity, but seeking guidance early on is key.
Considering the intricacies of VAT regulations across EU countries, consulting with an independent force in global and UK VAT would provide valuable insights. Their expertise can help you tailor your approach, ensuring compliance and smooth transactions for your European customers. Don't hesitate to reach out for assistance, and I wish you continued success in your business journey!

Edited by SkylerCosta
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