There are a few questions mixed in here:

  1. Does Leanpub collect and remit VAT on its sales?
  2. How does Leanpub pay royalties?
  3. Are there VAT concerns with royalties?

In terms of the answers to those:

  1. Leanpub collects VAT on purchases and remits through VAT MOSS. Details here: http://help.leanpub.com/reader-help/why-do-book-prices-have-vat-added
  2. We pay royalties monthly, with a 45-day hold on the royalties from each purchase (because of refunds). Details here: http://help.leanpub.com/author-help/selling-and-royalties/how-and-when-do-you-pay-royalties
  3. We don't provide tax advice, but royalties are royalties, and we do not charge or remit VAT on royalties. You do not need to send us invoices. Details here: http://help.leanpub.com/author-help/i-have-a-business-and-my-accountant-says-that-i-need-to-collect-and-remit-vat-on-my-ebook-sales

Did this answer your question?