Beginning on April 1, 2021, TuneCore will assess if your purchases and/or withdrawals are subject to value-added tax, commonly known as VAT. VAT is a kind of tax that’s assessed incrementally, and is added on top of the price of a product or service at the time of sale - and in some cases it is paid to you at the time of withdrawal. VAT generally applies to most goods and services that are bought and sold in the European Union.
If you meet the location and entity requirements, you will be required to pay VAT at the time of your transaction. The rate you pay will be dependent on the country in which you reside. All of TuneCore’s products and services are currently subject to VAT, none are exempt or subject to reduced rates.
Which purchases are subject to VAT?
VAT applies to all purchases made by residents of EU Member States:
Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden
EU and non-EU clients who provide TuneCore with a valid VAT number will not be subject to VAT charges on purchases except for clients based in Luxembourg (who will be assessed for Luxembourg VAT regardless). However, Luxembourg clients can still provide a VAT number, which will appear on their invoices to be used when they file taxes.
All EU and non-EU clients will receive an invoice at the end of the day that outlines your purchases broken down by the transaction’s base price + VAT and total. If your purchase falls into a 0% VAT bracket, that will be noted appropriately on the invoice you receive.
When you request a withdrawal, this is seen as TuneCore paying you for goods or services (you supplied the release, we collected your revenue on your behalf) - in this case the goods/services are your releases.
TuneCore will pay Luxembourg businesses that are VAT registered a 17% VAT fee at the time of withdrawal. That means if you withdraw €100, TuneCore will pay you €117, and that €17 VAT will be itemized on your withdrawal invoice.
If you are eligible, and choose to use your account balance to pay for your renewals, you will receive two invoices at the time of the renewal transaction: one that indicates you’ve made a “temporary withdrawal” from your TuneCore balance, and one for the use of that balance for the renewal purchase.
How much will I pay?
Use the chart below as a guide to help determine if your purchases (including renewals or other recurring charges) and/or withdrawals will be subject to VAT charges:
*If 0%, you may be separately responsible for assessing and making VAT payments, check with your local tax authority for more information.
**European Union = all member states except for Luxembourg.
***Non-EU locations do not include the USA or Luxembourg.
Can I add my VAT number to my purchase or account?
You have two options for including your VAT number: you can add your VAT number to your account in your Account Settings, or you can add it to the cart directly while making a purchase.
To add your VAT number in your account settings:
- Login to your TuneCore account
- Click your name at the top right corner of the dashboard
- Choose “Account Settings” when the menu appears
- Choose "Tax Details" then edit your VAT registration details
Once your VAT number is added to your account, we’ll save it for all of your future purchases - you can edit it at any time should you need to do so.
I forgot to add my VAT number to my purchase/account
If you made a purchase and were charged VAT because you forgot to add your VAT number to the purchase, TuneCore cannot adjust the invoice you have received. You will be able to claim your VAT refund online via the authorities in the country where your business is based. TuneCore cannot help you do this, but you can learn more about how to claim your VAT refund on the EU’s official site.