Value Added Tax (VAT) is a consumption tax applied to the price of goods and services purchased within the European Union and the United Kingdom. The VAT rate differs depending on the country and the type of product or service. This tax is collected at the point of purchase and paid directly to the relevant tax authority.
On KNKY, VAT is collected on behalf of a creator if both of the following conditions are met:
1. The creator is based in the UK and has provided their VAT information
2. The customer is also based in the UK.
This ensures that VAT is accurately applied to relevant transactions in accordance with local tax regulations.