VAT, or “value added tax” is a tax applied on sales in the European Union (EU). LoveKnitting is VAT responsible. We collect the VAT on sales made to the EU to pay this tax and pay you based on the amounts excluding VAT.
VAT must be collected for any digital service sales to customers in the EU at the VAT rate of the country in which the customer makes the purchase. When you sell your patterns through LoveKnitting or LoveCrochet, you conduct a business-to-business transaction with us and we conduct a business-to-consumer transaction with the customer buying your pattern. As LoveKnitting and LoveCrochet are the ones making the transaction with the customer, we are responsible for managing the VAT for pattern purchases.