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Rules for the VAT application on Cults.

Reminder of the pricing policy

Designers choose the selling price before tax of their shared digital design on Cults.

The Cults commission (20%) is included in the pre-tax selling price set by the seller.

Prices are initially displayed to site visitors without tax. When a design is added to the shopping cart, the prices are displayed inclusive of VAT.

VAT is only applied to the Cults commission as the marketplace acts as a transparent intermediary.

Sellers have the possibility to change their prices at any time.

Designs are charged according to the prices in effect at the time of the order validation on the Cults marketplace.

How VAT works

The VAT reform for e-commerce in Europe that came into effect on July 1, 2021 establishes new rules to be followed in the application of VAT.

The VAT rate applied to the Cults commission will differ depending on the status of the seller, whether he is a private seller or a professional seller, and on the country of the buyer.

The status of the seller is determined according to the legal identity that he has declared in his personal Cults space.

The origin of the buyers is determined according to the legal identity declared in their personal Cults space or, failing that, via their IP address.

The revenues sent to the designer when they request payment are gross revenues. Each vendor will need to manage their own ing and tax compliance according to their status and country of tax residence.

Using the tools and information provided by Cults in his personal space, the seller will be able to declare or not the VAT on each of his sales revenues according to his tax status and the nature and identity of his customers.

Case of a particular seller :

  • If the buyer resides in a country of the European Union, the VAT rate applied on the Cults commission is the one in force in his country (VAD system).
  • If the buyer resides in a country outside the European Union, no VAT is applied on the Cults commission (EXPORT regime).

Case of a professional seller :

  • If the seller is a professional whose company is based in , the VAT rate applied to the Cults commission is 20% (NORMAL regime).
  • If the seller is a professional whose company is based in a European Union country and has a valid intra-community VAT number entered in his Cults space, no VAT is applied to the Cults commission (AUTOLIQUIDATION system).
  • If the seller is a professional whose company is based in a country outside the European Union, no VAT is applied to the Cults commission (EXPORT system).