Do You Need To Pay Tax For Selling On Redbubble In The UK?

If you are concerned about whether or not you need to pay tax for selling on Redbubble in the UK, you will find detailed guidance as you read through the content of the following blog post and find an answer to your question.

Do You Need To Pay Tax For Selling On Redbubble In The UK?

If you are selling on Redbubble in the UK, you may or may not need to pay tax; based on how much you earn through sales or commission.

If you’re selling goods or services as a business, you’re required to register for VAT (Value Added Tax) if your annual turnover is over £85,000. If your turnover is below that threshold, you can choose to register voluntarily. This means that you’ll need to charge VAT on your sales and submit regular VAT returns to HMRC (Her Majesty’s Revenue and Customs).

When it comes to Redbubble, the platform automatically includes VAT in the price of all products sold to customers in the EU, including the UK. They then deduct this VAT from your earnings and remit it to the relevant tax authorities. This means that you don’t need to worry about calculating or collecting VAT yourself as Redbubble takes care of it for you.

However, it’s important to note that if you’re registered for VAT in the UK, you’ll need to provide Redbubble with your VAT number so that they can correctly handle your tax obligations. You can add your VAT number to your account settings, and Redbubble will then apply the appropriate VAT treatment to your sales.

If you’re not registered for VAT in the UK, you don’t need to worry about providing Redbubble with any additional information. However, if you’re based in another country and you’re selling to customers in the UK, you may need to register for VAT in the UK or appoint a tax representative to handle your tax obligations.

What Are Redbubble’s Tax Policies?

Redbubble is a popular online marketplace that allows artists and designers to sell their work in a variety of formats, from clothing and stickers to phone cases and wall art. If you’re based in the UK and you’re considering selling on Redbubble, it’s important to understand how the platform handles taxes and what your obligations are as a seller.

It’s worth noting that Redbubble is based in Australia, so its tax policies are geared towards the Australian market. However, they do have systems in place to help UK sellers comply with their tax obligations.

For instance, Redbubble automatically includes VAT in the price of all products sold to customers in the EU, including the UK. They then deduct this VAT from your earnings and remit it to the relevant tax authorities.

Redbubble operates a withholding tax system for sellers who are based in countries with which Australia has a tax treaty. This means that a portion of your earnings may be withheld and remitted to the Australian tax authorities, and you’ll need to claim this back on your tax return in your home country.

Overall, Redbubble’s tax policies are designed to make it as easy as possible for sellers to comply with their tax obligations, regardless of where they’re based. As long as you understand the relevant tax rules in your country, and you provide Redbubble with any necessary information, you can focus on creating and selling your artwork with confidence.

How Can You Stay Compliant With Redbubble’s Tax Policies In The UK?

Staying compliant with Redbubble’s tax policies in the UK is important for both your legal obligations and your peace of mind as a seller. Here are some tips to help you stay on top of your tax obligations:

• Register for VAT if necessary. If you’re a UK seller with an annual turnover above £85,000, you’re required to register for VAT. If you’re below the threshold, you can choose to register voluntarily. Make sure to register and charge VAT on your sales if required.
• Provide Redbubble with your VAT number if applicable. If you’re registered for VAT in the UK, make sure to add your VAT number to your Redbubble account so that they can handle your tax obligations correctly.
• Keep track of your earnings. Make sure to keep track of your earnings from Redbubble, as you’ll need to report these on your tax returns.
• Consult a tax professional if needed. If you’re unsure about your tax obligations or how to comply with them, consider consulting a tax professional such as VAT Specialist Advice for Small and Large Businesses for advice.
• Keep up to date with any changes to Redbubble’s tax policies. Redbubble may update its tax policies from time to time, so make sure to stay informed about any changes that may affect you as a seller.

Conclusion:

The above discussion helps to answer the question regarding paying taxes if you are selling on Redbubble from the UK; helping to conclude that most sellers will not need to pay VAT on their commissions when they sell through Redbubble as the website takes care of it at the source. 

References:

Print on Demand Taxes Explained (UK) – Traversion Research

What figure to declare on income tax – selling in Redbubble? – Community Forum – GOV.UK

VAT when selling through RedBubble — MoneySavingExpert Forum