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Price it at £12 in the UK, and you keep £10
Selling to UK or EU consumers? The price you show must include VAT.
In the UK, the selling price includes VAT and all other taxes, and this applies to online sales too. In the EU, the selling price is the final price, including VAT and all other taxes.
So a £12 price means £10 for you, before fees. That example assumes the UK standard VAT rate of 20%. Rates vary by product and by EU country. Set your price with VAT already inside it.
Selling to US consumers? There's no single sales tax.
Each state sets its own rate, and your buyer's address sets the rate: state plus local.
- California: 7.25% state rate, plus local district taxes that vary by location
- Texas: 6.25% state rate, plus local up to 2%, combined max 8.25%
- New York: 4% state rate, plus local tax that varies by county and city
- Oregon: no general sales tax
Same product, different tax. Check where your buyers are before you set a price.
Sources
- UK Price Marking Order 2004, as amended (GOV.UK guidance)
- GOV.UK, VAT rates (opens in a new tab)
- EU Directive 98/6/EC, Art. 2
- California CDTFA
- Texas Comptroller
- New York State Dept. of Taxation and Finance
- Oregon Dept. of Revenue