A huge plus of using Shopify that rarely gets mentioned in Shopify reviews is its VAT MOSS, or VAT Mini One Stop Shop, functionality, which is extremely important if you frequently sell digital products to customers in the EU.
VAT MOSS is an EU requirement in which digital products must have the value added tax, or VAT, added to every digital product for each individual EU country. For instance, A VAT rate must be applied to every digital product sold in the UK, and another one must be added for France, and then Italy, and so on.
Unlike many of Shopify’s competitors, Shopify automatically calculates the appropriate VAT rate. This means there’s no need to do this manually, which can be a real hassle. For many, this alone is a powerful unique selling proposition for Shopify over its competitors.
Digital Products and Shopify
Speaking of digital products, while most people use Shopify to sell physical goods, it can be used to sell digital products as well. In order to do so, however, you need to visit Shopify’s app store and install the ‘Digital Downloads App.’
While this is an extra step, the app is free and extremely easy to use. It can also be configured to work automatically. After ordering with a credit card through Shopify Payments or a payment gateway, the download link is automatically emailed to the customer to fulfill their order.
That said, there is a limit on how large the product files can be. With Shopify, only products 5GB and under can be sold. Once again, there are ways to work around this through the use of third-party apps, but with this comes added costs.
VAT MOSS is an EU requirement in which digital products must have the value added tax, or VAT, added to every digital product for each individual EU country. For instance, A VAT rate must be applied to every digital product sold in the UK, and another one must be added for France, and then Italy, and so on.
Unlike many of Shopify’s competitors, Shopify automatically calculates the appropriate VAT rate. This means there’s no need to do this manually, which can be a real hassle. For many, this alone is a powerful unique selling proposition for Shopify over its competitors.
Digital Products and Shopify
Speaking of digital products, while most people use Shopify to sell physical goods, it can be used to sell digital products as well. In order to do so, however, you need to visit Shopify’s app store and install the ‘Digital Downloads App.’
While this is an extra step, the app is free and extremely easy to use. It can also be configured to work automatically. After ordering with a credit card through Shopify Payments or a payment gateway, the download link is automatically emailed to the customer to fulfill their order.
That said, there is a limit on how large the product files can be. With Shopify, only products 5GB and under can be sold. Once again, there are ways to work around this through the use of third-party apps, but with this comes added costs.
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