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I am a UK-based VAT registered designer. When I receive a payment for my sales, will it include VAT?

Yes, if you're VAT registered and based in the UK, we're obliged to add VAT to the amounts we pay out to you. As such, the VAT paid to you will be at the UK VAT rate of 20%. 
As LoveKnitting Ltd is a UK VAT registered business, the sale of your patterns through LoveKnitting or LoveCrochet will classify as a business-to-business transactions with our business. We handle the transaction with the end customer, so you do not need to collect the details of where your patterns were sold through LoveKnitting or LoveCrochet for VAT purposes.

In order to sell on you will need to provide your payment details, billing address and VAT status. If you are VAT registered you must accept the self-billing agreement. It will allow us to process payments we owe you without you having to send us an invoice.

According to this agreement you will receive a self-billing invoice accounting for your sales (if your sales exceed the minimum monthly payment threshold) that conforms to HMRC regulations. This agreement will expire 1 year after you sign it. We will contact you to let you know when you need to sign a new agreement.

You must notify us and update your details on your Designer Profile immediately when your VAT number changes, you stop being VAT registered or sell your business. 
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