Tax and VAT
They say tax doesn't have to be taxing. Well we don't believe them... But what we say is that it doesn't need to be confusing.
When you create a product on bamazoo, any sales that are made are handled directly by us. We are responsible for handling the transaction and delivering the download to the customer.
This means we handle all the tax involved in the transaction, including filing and return the tax to any necessary governments.
EU VAT regulation
We are fully compliant with the EU VAT regulation law that came in to place in 2015. Our VAT registration number is 198332378.
This means that any sales from any EU country must include VAT. This rate can change from state to state, but we automatically calculate and collect this.
We file and return this collected VAT to HMRC. Because of this, you do not have to be VAT registered to sell on our store.
As we are based in the UK, and do not have any US premises(Nexus) we are not subject to US sales tax. Because we directly handle the transaction, even if an author is based in the US, this does not effect how US tax is applied to a sale.
Because we handle all sales tax, this does not mean authors are not required to pay tax on their royalty earnings. We cannot give tax advice, so if you are unsure on tax implications of selling with us, please contact an accountant or your government's tax advice centre.
How is VAT added?
All are prices are inclusive of VAT. This means that the price you see, is the price you pay at checkout.
This is an EU law and outlined in the following EU consumer guidelines:
When you make a purchase, you have to be clearly informed about the total price of the goods or services inclusive of all taxes and additional charges.
We also believe this is fair for the customer, who should not have to pay more due to a particular country that they live in.
This is also outlined in EU consumer guidelines to prevent price discrimination:
As an EU national you can't be charged a higher price when buying products or services because of your nationality or country of residence.
You can read more about EU consumer guidelines here.