Tax on Digital Goods Sold Online?

Andy11 · Jun 8th, 2011, 05:31 PM

Hi all,

I want to ask if tax has to be paid on the sale of digital items sold online. E.g. If i set up a ecommerce website and it becomes my main income, would i have to declare it as a business selling physical goods would? Are there laws exempting fully digital sales from tax? I've searched around for answers but have not found anything. Any info would be much appreciated. I'm based in England if that matters at all. Thanks!

AFFA · Jun 9th, 2011, 01:09 AM

I wish to inform you that you will be required to pay VAT on your goods. If goods are being sold to private individuals then VAT is required to be paid. General supplies of physical goods are deemed to be made in the place where the goods are located when they are dispatched. Where the goods are merely ordered using electronic communications, this will not affect the way in which they are treated for VAT purposes.

AFF

Andy11 · Jun 9th, 2011, 01:03 PM

Thanks for the quick response AFFA. However, I'm not sure i explained clearly enough in my original post. The goods themselves are not physical but digital game items sold and transferred online.

Jun 8th, 2011, 05:31 PM	#1
Andy11 Junior Member Country: Join Date: Jun 2011 Posts: 2	Tax on Digital Goods Sold Online? Hi all, I want to ask if tax has to be paid on the sale of digital items sold online. E.g. If i set up a ecommerce website and it becomes my main income, would i have to declare it as a business selling physical goods would? Are there laws exempting fully digital sales from tax? I've searched around for answers but have not found anything. Any info would be much appreciated. I'm based in England if that matters at all. Thanks!

Jun 9th, 2011, 01:09 AM	#2
AFFA Top Level Member Join Date: Dec 2009 Posts: 12,551	Re: Tax on Digital Goods Sold Online? I wish to inform you that you will be required to pay VAT on your goods. If goods are being sold to private individuals then VAT is required to be paid. General supplies of physical goods are deemed to be made in the place where the goods are located when they are dispatched. Where the goods are merely ordered using electronic communications, this will not affect the way in which they are treated for VAT purposes. AFF
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Jun 9th, 2011, 01:03 PM	#3
Andy11 Junior Member Country: Join Date: Jun 2011 Posts: 2	Re: Tax on Digital Goods Sold Online? Thanks for the quick response AFFA. However, I'm not sure i explained clearly enough in my original post. The goods themselves are not physical but digital game items sold and transferred online.
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