Pricing your patterns excluding VAT means setting a base price and letting us add the appropriate VAT based on the buyer’s country. The prices within the EU will vary by up to 9% depending on the VAT rate in the buyer's country and there will be no VAT applied in the rest of the world. The amount you receive will be the same and will not depend on the buyer's location.
This is the default VAT preference setup and how all independent designers patterns on LoveKnitting have been priced up until the end of April 2015. However, if you would prefer to price your patterns including VAT you can now choose to do so.
VAT-exclusive pricing, as an example during the promotional period when commissions are waived:
- Let’s say you, as a designer set the price of your pattern at £4.00
- If this pattern sells to a customer in Germany, where VAT is charged at 19%, the price the customer will see and pay is £4.76
- When a sale of this pattern is made, we’ll pay you this £4.00, keeping the 76p to pay the VAT