What is VAT?
Value Added Tax (VAT) is a consumption tax levied on goods and services within some countries, including countries within the EU, and certain other countries. Different rates of VAT apply in different member states. Please note that depending on the country in which you are located, VAT may be more commonly known as GST (Goods and Services Tax).
Why do you charge VAT?
Changes to the EU’s VAT law that took effect in 2015 required us to begin charging VAT on all electronically supplied services (“ESS”), which include products offered on Creative Market. Since then, Creative Market has increased tax compliance by charging VAT for other countries as their laws introduce VAT requirements.
Creative Market is based in the US, so why are you charging me VAT?
VAT is based on the location of the buyer only and is not determined by the location of the seller.
Who must pay VAT?
Creative Market requires buyers located* in the following countries to pay VAT, unless you provide a valid VAT ID number:
| EU Countries | Other Countries |
| Austria Belgium Bulgaria Croatia Cyprus Czech Republic Denmark Estonia Finland France Germany Greece Hungary Ireland Italy Latvia Lithuania Luxembourg Malta Netherlands Poland Portugal Romania Slovakia Slovenia Spain Sweden United Kingdom |
Australia - Please see Australian GST FAQ Singapore (referred to as GST) |
* For EU Countries, the European Commission states that “located” means:
- For a business (taxable person) = either the country where it is registered or the country where it has fixed premises receiving the service.
- For a consumer (non-taxable person) = the country where they are registered, have their permanent address, or usually live.**
** For example, a UK citizen who lives in or works most of the time in Spain is considered an “expat.” In this case, we would be required to charge Spanish VAT rather than UK VAT.
What is a Tax ID Number?
A Tax ID Number* shows that a buyer is a registered business in a VAT/GST member country and is exempt from paying VAT. Entering a valid tax ID in your Payment Settings will make sure you won’t be charged VAT/GST by Creative Market. If you are a business located in a VAT/GST member country, but you do not have a Tax ID Number, you will be charged tax.
* Many countries call this number a VAT ID, though some countries have a different name for it. For example, it’s known as a VRN in the UK.
Help! My Tax ID is being rejected.
Our system will reject your VAT ID Number for one of two reasons:
- Because the VAT Information Exchange System (VIES) for your country is currently down. While your VAT ID Number may be correct, our system has no way of validating this until your country's VIES is up again, and will continue to reject it until it is. You may want to contact your country's tax authorities to find out when the system will be back up. This link contains more information.
- Your VAT ID is invalid. Our system makes a direct call to your country's VIES, which either validates or rejects your ID. We then relay that message back to you. If you receive a rejection, this message is coming directly from VIES. You'd need to speak to a tax advisor or your own tax authorities for further assistance on why your VAT ID is not being accepted.
Will I be charged at purchase if I provide a valid Tax ID Number?
No. If you enter a valid Tax ID, you will not be charged VAT/GST.
How does the purchase flow include VAT?
Upon your first purchase of a Creative Market product, you will be asked to confirm where you are located. If you affirm you are in a VAT member country, you will be charged VAT on all of your subsequent purchases, based on the VAT rate set by the country in which you are located.
Upon receipt of a valid Tax ID Number, Creative Market will not collect VAT on transactions that occur after the Tax ID Number is provided.
You may enter a Tax ID Number here. Please note that this must be entered before your purchase to avoid being taxed.
If I obtain a valid Tax ID Number after my purchase, how do I get a refund for VAT charged on purchases prior to that?
As the laws of each country vary, Creative Market recommends you consult with your tax advisor in order to obtain a refund in such case.
How can I enter my Tax ID or edit my country / address?
You may do this when you’re checking out on a product page, or at any time from your Payment Settings page. Please note that changing your Tax ID Number and/or your country and address will only affect purchases that occur after the changes are made. Since Creative Market creates and stores VAT invoices as read-only based on the VAT Information you entered here at the time of purchase, invoice data on previous purchases will remain unchanged.
I purchased from a Creative Market Shop Owner who has a VAT ID Number, so why was I charged VAT?
VAT is assessed based upon the location of the customer. The Shop Owner’s tax status has no effect.
What is the Reverse Charge Mechanism?
The Reverse Charge moves the responsibility for the recording of a VAT transaction from the seller to the buyer of a good or service.
This mechanism eliminates or reduces the obligation for sellers to VAT-register in the country where the supply is made. If the supplier incurs any local VAT on costs related to the service or goods supplied under the Reverse Charge, they may recover them through a VAT reclaim.
How is VAT calculated?
The VAT rate in the country where you are located* determines the percentage of the product’s price that will be assessed as VAT. Product prices you see on Creative Market prior to purchase do not include VAT. At checkout, the amount of the VAT will be shown.
* Please see “Who must pay VAT?” above for clarification.
As a buyer, how will I know what the total price of a product including VAT will be before I purchase?
The prices shown on Creative Market products do not include VAT. The total price including VAT, the VAT country, and the VAT percentage/rate will be shown in the purchase flow, before you confirm your order.
When you confirm the country where you are located, the VAT % rate for that country will determine how much VAT you will be charged each time you make a purchase. For example, if confirm that you are located in France, you will always be charged 20% VAT. That means if you buy a product for $10, you will be charged an additional $2 in VAT. Subsequently, if you buy a $20 product, you’ll be charged an additional $4 in VAT.
What is the VAT rate in my country?
For your country’s VAT rate please see these resources:
- http://ec.europa.eu/taxation_customs/taxation/vat/topics/rates_en.htm
- http://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/how_vat_works/rates/vat_rates_en.pdf
- https://www2.deloitte.com/global/en/pages/tax/solutions/global-indirect-tax-rates.html
Who is considered the seller for VAT purposes - Creative Market, or the Shop Owner?
For the purposes of VAT, Creative Market is deemed to be the seller. Creative Market determines, collects, and remits VAT for all purchases by buyers (where applicable).
How do I get a VAT invoice for each purchase?
VAT invoices are designed to comply with the legal requirements set forth by each VAT member state. They are created at the time of purchase and can be found and downloaded from your purchases page.
Will VAT be shown on 1099s and 1042s?
No. VAT is not collected from Shop Owner earnings. Because VAT is not an income tax, amounts collected will not appear on US forms.
Is anyone exempt from paying VAT besides buyers with a valid Tax ID Number?
No.
As a Shop Owner, are my earnings affected by VAT?
No, VAT is not part of your earnings calculation.
What is Creative Market’s registered VAT number?
- VAT Number: EU528002441
- ASGD Number (Singapore): A3912421Z
Who will remit the VAT collected?
Creative Market determines, collects, and remits VAT for all purchases.
What is Intra-Community Acquisition? Does that affect whether VAT is collected and/or the amount collected?
We are a non-resident company; therefore, there is no Intra-Community Acquisition of goods.
Will I be charged VAT when I purchase credits packages?
No. However, Creative Market will collect VAT on individual products you download using your credits.
If I make a purchase using credits or un-withdrawn earnings, do I have to pay VAT?
Yes*. Regardless of whether you’re using a Credit Card or Creative Market Credits to pay for your product order, you will be charged VAT if you have not provided a valid VAT ID and you’re located in a VAT-designated area.
* Please see “Who must pay VAT?” above for clarification.
What is Harmonized Sales Tax (HST), and is it related to VAT?
Harmonized Sales Tax is another form of consumption tax (in Canada), which is separate from VAT. Creative Market does not charge HST at this time.
What is Goods and Services Tax (GST), and is it related to VAT?
Goods and Services Tax is another form of consumption tax (in Australia and other countries), which is similar to VAT. Creative Market charges GST for Australia, and you can learn more about GST here.
How does Creative Market account for currency exchange rates when collecting VAT?
All purchases on Creative Market are in USD, and Creative Market will remit payments to VAT member countries in their native currency.
If I receive a refund, will the VAT I paid be refunded as well?
Yes; any refunds issued are for the full amount of the purchase price: base price + VAT.
I was traveling abroad when I made my first Creative Market purchase, and I was charged VAT. However, I live in a country that does not require VAT. Why am I still being charged VAT?
Upon your first purchase of a Creative Market product, you were asked to confirm where you are located. If you affirmed you were located in a VAT member country*, your purchase (as well as all subsequent purchases) will be charged VAT, based on the VAT % rate for that country. You may change your country information or correct a mistake from this page. However, please note that previous VAT collected cannot be refunded. For additional questions, please contact the Support Team.
* Please see “Who must pay VAT?” above for clarification.
As a Shop Owner, how do I find out what VAT rate my buyers will be charged?
The VAT rate your customers will be charged (where applicable*) depends on the country in which they are located. For country-specific VAT rates, please see these resources. Please note that any VAT paid by your customers will have no effect on your earnings.
* Please see “Who must pay VAT?” above for clarification.
Additional information on the topics above can be found here:
European Commission VAT information:
- General Overview
- Telecommunications, broadcasting & electronic services
- Questions & Answers: VAT changes from 2015
- 2015 EU VAT changes - contact points provided by Member States
UK information:
- VAT: businesses supplying digital services to private consumers
- VAT: Supplying Digital Services and the VAT Mini One Stop Shop (VAT MOSS)
Additional VAT / GST Information:
The above FAQ is not intended to represent tax, accounting, or legal advice. Should you have any additional questions, especially those concerning your specific tax situation, you are encouraged to consult your tax advisor.