VAT Information Notice
VAT rates and thresholds shown are based on EU regulations and may change. Rates are subject to change by member states. This is general information only - consult a VAT specialist or your accountant for compliance advice. Information current as of January 2025.
Sound familiar?
These challenges stop thousands of entrepreneurs from getting started. But they don't have to stop you.
- Confused about whether Gumroad handles VAT for you
- EU customers = VAT complexity
- Not sure if you need your own company
- Gumroad takes fees + VAT implications unclear
- Want to sell globally but VAT seems complicated
Good News
Gumroad is a Merchant of Record
Gumroad Handles EU VAT for You
As a Merchant of Record (MoR), Gumroad is legally the seller to your customers. This means:
- ✓Gumroad charges VAT to EU customers at the correct rate
- ✓Gumroad remits VAT to EU tax authorities
- ✓You receive your payout minus Gumroad fees — VAT already handled
- ✓No EU VAT registration needed just for Gumroad sales
When You Might Still Need a Company
Selling Outside Gumroad
If you sell through your own website, invoice clients directly, or use platforms that aren't merchants of record — you may need your own VAT handling.
Tax Optimization
Even with Gumroad handling VAT, your income still gets taxed. An Estonian company offers 0% on retained earnings — keep more of your Gumroad profits.
Professional Invoicing
If you do consulting, coaching, or services alongside digital products, you'll need proper invoicing. Gumroad doesn't help there.
Xolo Leap: Structure your digital product business properly
Xolo Leap
Structure your digital product business properly
From €79/month
- EU company for income structuring
- 0% corporate tax on retained profits
- Invoice clients directly when needed
- Multi-currency business banking
- Track Gumroad payouts as income
- Deduct business expenses
- Professional accounting included
- Ready to scale beyond Gumroad
No credit card required
Gumroad Payout Structure
Understanding what you receive from Gumroad:
Note: Exact fees vary. This is illustrative. VAT only applies to applicable purchases.
Other Use Cases
VAT guidance for different platforms
OSS & IOSS VAT Compliance Guide
Everything about One-Stop-Shop and Import One-Stop-Shop for EU VAT compliance.
Amazon FBA Europe VAT Requirements
VAT requirements for Amazon FBA sellers. Pan-European FBA, inventory storage, marketplace rules.
Etsy EU VAT for Sellers
VAT compliance for Etsy sellers. Marketplace collection and handmade/vintage sales.
Dropshipping to Europe VAT Guide
IOSS registration, customs duties, and VAT collection for dropshippers.
Frequently Asked Questions
Everything you need to know before getting started
All information verified as of December 2025. Prices and features subject to change. Always verify current pricing with providers.
