VAT & Getting Paid – What Creators Need to Know
To help make it as smooth as possible for you to get up and running (and paid), Everpress has a self-billing arrangement with you as part of our Terms and Conditions. Depending on whether or not you’re VAT registered, there are different processes for how VAT is handled on your payouts.
How sales work
When a buyer makes a purchase from the Everpress website, they are buying from Everpress, not from the creator who made the product and owns the design. That means Everpress is responsible for paying the VAT or sales tax to the country where it is owed. Even if the original creator is VAT-registered, they do not need to submit any details of their sales to HMRC in the UK or to other tax authorities in their respective countries.
How payouts work
As a creator on Everpress, you license your design to us. In return, we pay you a Design Fee for each item sold featuring your work. This ‘Design Fee’ is your payout.
If you’re VAT registered, you’re supplying us a service and can charge VAT on top of your Design Fee. The sale price to the end customer and the production costs are handled by Everpress and are not relevant to your accounting or tax position.
Example:
If your Design Fee is £100 for 10 T-shirts sold, and you’re VAT registered in the UK, you’ll charge us an additional £20 in VAT. We’ll pay you £120 in total.
If you’re VAT registered:
Add your VAT number to your Everpress account – if it’s not there, we’ll assume you’re not registered.
Contact our finance department by email at finance@everpress.com to organise re-billing with additional VAT on top of your design fee.
If you’re not VAT registered:
VAT will not be added to your Design Fee.
Your payout is simply the agreed amount for licensing your design.