Are you responsible for paying VAT yourself? Here's what you need to know

Your buyers pay directly into your own Stripe account through Stripe. Filing and remitting VAT on your sales remains your responsibility as the seller, including sales abroad. Here is what you need to know.

Your own fiscal responsibility

As a seller running your own storefront, you are responsible for filing and remitting VAT on your sales. RecordFlower is a technical platform and does not act as a tax advisor. Whether you are liable for VAT depends on your situation: your business's legal form, your turnover, and the country you are established in.

Who calculates the VAT

If your business is established in the EU, RecordFlower calculates the VAT at checkout. We read the rates directly from the European Commission's database, so you never have to keep them up to date yourself. If you are established outside the EU, Stripe Tax continues to handle that.

Which rate applies

Three things decide the rate: the VAT regime you have set for an item, your buyer's country, and the registrations you have on file. Selling within your own country, your own rate applies. Shipping to another EU country while staying under ten thousand euros a year, your own rate still applies. Above that and registered for the One Stop Shop (OSS), your buyer's country rate applies instead. Shipping outside the EU is an export: no VAT is charged, and your buyer pays import VAT on arrival.

We derive your settings from a few questions about your business when you set up your shop. What we worked out is shown in your dashboard, where you can correct it.

Three VAT regimes for your items

In your dashboard, you set which regime applies to your items:

• 21% VAT. The invoice shows a VAT breakdown. Suited to regular, VAT-liable sales.
• Margin scheme. For second-hand goods. No VAT amount appears on the invoice; RecordFlower adds the legally required note automatically.
• VAT exempt. For the small-business scheme. No VAT appears on the invoice, with the corresponding legal note.

What we do not do

We do not file your VAT return, and we do not track when you cross the ten-thousand-euro threshold for sales to consumers in other EU countries. We ask that question once when you set up your shop; if the answer changes, you tell us yourself. We check VAT numbers for their shape, not their existence, and we never reverse-charge VAT to business buyers.

What this means for you

Filing remains your responsibility as a seller. We take the calculation off your hands. Unsure about your fiscal situation? Consult your accountant or tax advisor.