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Managing taxes and VAT.

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Managing taxes and VAT

This guide explains how taxes (including VAT) work on Lovecraftify for buyers and sellers. Lovecraftify is a marketplace and we’ve built tax/VAT collection into checkout, so sellers generally don’t need to manually calculate or add these charges at the product level.

Applies to: Handmade, Print-on-demand (POD), Digital downloads Support: help@lovecraftify.com
Quick summary: Lovecraftify calculates and collects applicable tax/VAT at checkout (where required). Sellers should focus on accurate product info and pricing. You may still be responsible for your own income/business taxes.

Table of contents

  1. What taxes/VAT are we talking about?
  2. How Lovecraftify handles tax & VAT at checkout
  3. What sellers still need to do
  4. Digital items & VAT
  5. Customs, duties, and import taxes
  6. Receipts, invoices, and tax documents
  7. Common questions
  8. Need help?

1) What taxes/VAT are we talking about?

Taxes can mean different things depending on where you and your buyers are located. The most common types you’ll see in ecommerce include:

  • Sales tax (common in the U.S.)
  • VAT (Value Added Tax) (common in the EU/UK and many other countries)
  • GST/HST (used in some countries/regions)
  • Import duties / customs fees (charged by the destination country on international shipments)
Important: This article focuses on taxes/VAT collected during checkout for an order. It does not replace professional tax advice about your personal or business tax obligations.

2) How Lovecraftify handles tax & VAT at checkout

Lovecraftify has tax and VAT settings built into the marketplace checkout. When required by law, the system will calculate the appropriate amount based on the buyer’s delivery location (and other factors).

What this means for sellers

  • You do not need to manually add tax/VAT to your product price.
  • You do not need to create tax rules for each region in your store.
  • The buyer will typically see taxes/VAT shown at checkout (when applicable).
Please note: Tax rules vary by country and can change. In some cases, additional information (like the buyer’s address details) may be required to correctly calculate taxes.

3) What sellers still need to do

Even though Lovecraftify helps with tax/VAT calculation at checkout, sellers still have responsibilities to keep listings accurate and manage their own business compliance.

A) Provide accurate product details

  • Correct product type: Handmade, POD (made-to-order), or Digital download.
  • Accurate shipping origin: Your ship-from location should match where items actually ship from.
  • Correct item attributes: Category, materials, weight/dimensions (if used for shipping), and product description.

B) Keep your seller profile information up to date

  • Business name (if applicable)
  • Contact email
  • Payout information (via payment partners)

C) Understand your own income/business taxes

Taxes collected at checkout are different from your income tax or business tax. You may still need to track revenue, expenses, and fees for your local tax filing.

Tip: Keep a simple monthly record: total sales, refunds, Lovecraftify fees, shipping costs, production costs, and advertising costs. This helps make tax season easier.

4) Digital items & VAT

Some regions treat digital goods differently from physical goods. Depending on local law, VAT (or similar taxes) may apply to digital downloads.

  • Lovecraftify will apply tax/VAT at checkout when required.
  • Sellers should ensure digital listings are correctly marked as Digital download.
  • Digital orders can be delivered immediately after purchase, which is why accurate listing setup matters.
For digital products, make sure files are uploaded correctly and that buyers can access downloads from My Account → Orders.

5) Customs, duties, and import taxes

For international physical shipments, buyers may be charged customs duties or import taxes by their country. These charges are typically collected by the carrier or local customs authority, not by the seller.

  • Customs/duties are usually paid by the buyer, unless your listing clearly states otherwise.
  • Delays can happen when customs requires additional processing.
  • Accurate customs forms and truthful item descriptions help avoid issues.
Do not mark packages as “gift” or undervalue items to avoid customs fees. This can violate laws and cause delivery problems.

6) Receipts, invoices, and tax documents

Buyers typically receive an order receipt/confirmation that shows order totals and any taxes collected at checkout. Sellers can use order records to reconcile sales and fees.

Where to find order information

  • Seller: Vendor Dashboard → Orders
  • Buyer: My Account → Orders
If you need documentation for your own accounting, export your orders regularly and keep copies of shipping receipts/production invoices.

7) Common questions

Do I need to add VAT into my product price?

No. Lovecraftify handles tax/VAT at checkout when required, so sellers generally should not manually add it.

Can I “turn off” taxes/VAT as a seller?

No. When tax/VAT is required by law, it must be collected. Lovecraftify manages this at the platform level.

What if my buyer asks about VAT or taxes?

You can explain that Lovecraftify calculates taxes/VAT at checkout based on the buyer’s location, and the final tax amount is shown before payment is completed.

What if the tax seems wrong?

Ask the buyer to confirm their delivery location details. If the issue continues, contact Lovecraftify support with the order number so we can review.

Need help?

If you have questions about how taxes/VAT appear on Lovecraftify orders, contact our team and include your order number (if relevant).

Email: help@lovecraftify.com
Help Center: /help-center

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