UK VAT question - already registered on flat rate scheme
I've searched this forum and a few other places to try and get some clarity on how to handle VAT for my new product. Here is the situation:
I want to launch a front end product + membership shortly (next couple of weeks)
I'm thinking of using paypal to start with as my payment processor
I currently work in my day job as an IT contractor through a LTD company
The company is registered for VAT under the flat rate scheme (I get to keep 5.5% of the 20% VAT I charge my contracting clients but don't reclaim VAT on purchases).
As my LTD is already VAT registered I understand I have to charge VAT for my digital products to customers in the EU.
I'm not too fussed about staying on the flat rate scheme if it involves avoiding a massive administerial headache when it comes to VAT returns.
Question - does paypal automatically apply VAT to transactions where applicable?
I have set up a VAT option for the UK for 20% - do I have to do this option for each EU state - if so can I just use the 1 paypal button on my pages?
Sorry if it's a daft question but I just searched the paypal help site and there is 1 result for VAT when I search which doesn't really help.
Thanks!
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