In 2018, the EU Council agreed to allow member states to reduce the VAT rate or minimize it entirely to 0% for income generated via e-Publications. The majority of these new rates weren’t implemented until 2019 and 2020.
And today, we’re happy to announce that Gumroad now applies these new rates to products that qualify.
Previously, we had a feature that let creators mark a product as an e-Publication, like eBooks, newspapers, audiobooks, children's books, magazines, etc. for VAT purposes, but now the appropriate VAT rates for products are applied automatically (once you activate it).
Below are the new rates that will be applied to your e-Publications:
Here’s how to mark your e-Publication for VAT purposes:
Here’s the new VAT rates getting applied automatically:
This simply means that customers in the EU could pay less for your product, so we highly recommend that you activate this new feature :)
Have any questions? Email email@example.com and we’ll be happy to help!
The Gumroad Team