If you are a business making supplies of digital services to UK consumers, those supplies are liable to UK VAT. If you make supplies of digital services to consumers outside the UK these are not liable to UK VAT. They may be liable to VAT in the country where the consumer is based.
Can I sell digital products on my website?
Your online store doesn’t have to be limited to selling and shipping physical products. You can sell digital products, as well. Downloadable products — such as videos, PDF documents or MP3 audio files — can be sold from your site.
What is the best place to sell digital products?
14 Platforms to Sell Digital Downloads, Subscriptions
- Sellwire. Sellwire is a platform to sell digital goods online easily.
- Sellfy. Sellfy is an ecommerce platform to sell digital products, subscriptions, and physical goods.
- FastSpring.
- Selz.
- FetchApp.
- Gumroad.
- E-junkie.
- MemberPress.
Are digital services taxable?
In California, sales of electronic products such as data, digital images, e-books, mobile applications, and software generally aren’t taxable because there’s no transfer of tangible personal property.
Why are digital services important?
Digital solutions are helping businesses to tailor their products, services, interactions, and communications to fit customers’ specific needs. For example, according to a study by Gartner, chatbots will power 85% of customer service by the end of 2020.
What kind of digital products can I sell?
We’ve outlined a shortlist of popular digital products that you can start selling today.
- Software.
- Ebooks.
- Audio Files and Music Production Software.
- Games.
- Photography.
- Video.
What are examples of digital services?
Examples of digital services include games, e-books, cloud-based software, websites, and streaming music.
