Setting up EU VAT compliance | handmade in Europe tips & tricks

EU VAT compliance: Downloadable product settings

Handmade in Europe is set up with the EU Vat compliance plug in, so sellers can set up downloadable products such as PDF tutorials and photo prints.

There’s a few things to set up in your WooCommerce settings, and then the rest is automatic, customers will be sent a download link on check-out, and all orders will be saved in a single VAT tax report for the EU VAT submission.

A few things to pay attention to:

Setting up EU VAT rates

Setting up EU VAT compliance | handmade in Europe tips & tricks

Import EU VAT Tax rates

Just a single press on a button will import the current EU Tax rates. Visit your WooCommerce settings page, check the Tax tab, and under the Standard rates you will have a button ‘Add/Update EU VAT rates. Click once and they will all be added for you. Save.

Setting up EU VAT compliance | handmade in Europe tips & tricks

The EU VAT compliance readiness report

Under WooCommerce you have the EU VAT Compliance options. This is where you can later download your VAT Reports. Most important at this point is to check if all settings on your WooCommerce shop are correct. This is where the Readiness Report comes in handy. All results have to be green before you can start offering digital downloads.
In the WooCommerce tax settings you want to set the Tax calculations to be based up the Custumers billing address to calculate the correct rates.

Setting up EU VAT compliance | handmade in Europe tips & tricks

Product settings screen

And the last place to check is under WooCommerce=>Products=>Downloadable Products.

For help with these settings also see the WooCommerce Dowloadable product help, as this explains the different options available to you.

Setting up EU VAT compliance | handmade in Europe tips & tricks

The Woocommerce help page has details on all settings

I advice on either Force Downloads or X-Accel-Redirect/X-Sendfile. Clients will receive a download link in the confirmation e-mail that is send out automatically after payment, so the login is not strictly necessary. It will however enable them to see the file when they come back to log in. The time it is available for and the amount of times it can be downloaded is set up per product.

Setting up the products

Setting up the products is as easy as setting up normal products, with difference that you need to indicate they are downloads. Just list your product as you would normally do, but under the product data note the Virtual and Downloadable product check boxes.

Setting up EU VAT compliance | handmade in Europe tips & tricks

Marking the downloadable check box will give you all options

For your product you mark the field ‘downloadable’. If these are files that are never shipped also mark ‘Virtual’, otherwise your shipping will be added at check-out!

Whet else to note:

  • You load the files with the ‘Add File’ under downloadable files. You can either select from your Media library, or upload a new file. You will HAVE to upload to your media library, otherwise the download link will not send the file.
  • Download limit: You can set a limit on how many times the file can be downloaded. I suggest at least 3 times in case the download is interrupted or times out.
  • You can set the Expiry, this is the time in which the customer can access the files, after that the link will be void.

TIP 1: The download option can also be set up as a variable product, handy in case you sell physical photos, but also offer downloads. Or if you have a tutorial in different languages.

TIP 2: If you sell physical products next to the downloads you can link these, so when people select the product details they’ll see the other product as ‘you may also be interested in…’
See here for how

And that is it. Now when people order & pay they will receive a confirmation email with the download links included, no action needed anymore!

Setting up EU VAT compliance | handmade in Europe tips & tricks

The mail will contain the download links

TIP3 : In your woocommerce order options there will be the option to revoke the access to the files, or to extend the period or download amounts for any order.

And as last remark: mind that in the EU is a-day return policy on items sold over the internet. Which for digital downloads is a bit silly. In your Terms & Agreements page, which people have to accept before checkout you should therefore add a line that the return right on digital goods will be void, and best add this to your product description too so there can be no misunderstandings..

As always, if you have difficulties in setting this up don’t hesitate to contact us for help.