Tax Inclusive Pricing

Why are you making this change?

In order to improve the shopping experience for our customers, we are moving our platform to Shopify.

This platform will no longer allow us to support both tax inclusive and exclusive pricing, and therefore we will only be supporting tax inclusive pricing going forward. To continue selling your patterns through this transition, you will need to update your tax setting and implement any price changes to include VAT by mid-July.

What does this mean? 

The retail price displayed to the customer on the site will include any applicable local sales tax or Value Added Tax (VAT). Tax will be deducted from the final sale price rather than added on top of it at checkout so you will need to manually increase your set selling prices to accommodate this change and maintain your current earnings per sale where local sales taxes are collected. In all cases, standard platform fees and transaction costs will still apply to the base amount.

Tax-Free Countries: You’re paid your price minus fees and transaction costs.

• Example: If you set your price at £10.00, your payout is £10.00 minus fees and transaction costs.

Tax-Applicable Countries: Local sales tax (ranging from 10% to 25%) is deducted from your price in addition to fees and transaction costs. 

• Example: If you sell that same £10.00 pattern to a buyer in Germany (where tax is 19%), we deduct £1.60 for the tax and your payout is £8.40 minus fees and transaction costs. 

What you need to do:

To keep your listings active while we transition through this change:

1. Log into the Designer Platform.
2. Go to the Pricing Preference Center.
3. Switch on your VAT Preference to “Including VAT”.
4. Review your pattern prices: Check your current selling prices to ensure you’re comfortable with how your earnings will look after local sales taxes are deducted in addition to the standard fees and transaction costs.
5. To auto apply a 20% price increase to all of your patterns, check the box ‘Update prices'. 

Good to know:

• UK & US Sales: The UK and US do not collect VAT or local sales tax on digital pattern sales through our platform, so your sales in these regions will remain unaffected by these tax settings.
• European Union Sales: This change primarily impacts sales to European Union countries, where local tax treatments vary.
• Australia & New Zealand: This change will also apply to sales in these regions, where the local sales tax (GST) rates are 10% and 15% respectively.

If you need assistance with anything, or would like further information, you can contact our team by filling out our webform here: contact us

You can also view our Inclusive Pricing FAQ here: Inclusive Pricing - FAQ and ourDesigner Handbook here: Designer Handbook