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May 2, 2013

How VAT Eats Into Your Profits on Digital Subscription Sales

FInance, News, Payment Processing, Technology /

Most US publishers are unaware that they need to be collecting the value added tax (VAT) when selling online subscriptions to UK and EU audiences. That may be because printed periodicals and newspapers have been (and still are) exempt from VAT, but digital goods are not — that includes online and digital subscriptions. For those of you unfamiliar with VAT, it functions a bit like a sales, where goods and services are taxed at a percentage…

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Introduction to Selling Digital Subscriptions in the UK and Europe

Best Practice and How To, Business Operations, Payment Processing, Regulation and Compliance, Subscriber Only /

The advantage to online content is that global distribution is logistically easier and far cheaper than any other medium. However, there are still laws, payment processing and marketing considerations to take into account when expanding into international markets. In this Laws & Regulations briefing, we discuss three factors critical to selling subscriptions in the UK and Europe — Value Added Tax, Direct Debit and marketing differences. Plus, find out what laws and regulations may be changing that could affect your bottom line.

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