EJR Beads

Author Topic: Do you sell e-books or tutorials?  (Read 11130 times)

ejralph

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Do you sell e-books or tutorials?
« on: November 29, 2014, 10:42:05 AM »
Do you sell e-books or tutorials?

If so, new VAT laws coming into force in January will affect you.

Google vatmoss or even vatmess and you'll find all the chatter on this.

In a nutshell - if you sell any digital products direct to EU customers and the process is fully automated (ie your customer purchases, your website or whatever portal you use sends them the goods without you having to lift a finger) you will need to pay VAT on every sale TO THE EU COUNTRY THE CUSTOMER LIVES IN

Even if your business turnover is below the UK vat threshold. Every automated digital goods sale to EU customers is vatable - paid direct to that country. Oh this applies WORLDWIDE. If you are a tutorial seller in Canada or Pakistan or whever - you will be liable to pay vat to the govt of any EU customer's country

See why people are calling it VAT MESS now?

What does this mean to us?

If you sell through Etsy - the situation is still unclear. Will they handle the VAT for sellers or will sellers need to organise their own tax issues? As yet Etsy haven't answered.

There is however a get-out

The law does not apply when a certain amount of human interaction is involved in the sale. This has been debated back and forth over the last few days and finally reps from the Vat office went on record on their twitter Q&A to say that if we physically email pdf documents to our EU customers rathan than them downloading it automatically, it will not be liable for vat.

SO... this is what we will be doing at EJR Beads

Instant downloads for my e-book will still be available to UK and outside-Europe customers. However after Jan 1st 2015 - EU customers will need to purchase the non-instant download e-book. Exactly the same product only I will have to email it to them instead of them being able to download it from our servers themselves.

Absolutely effing stupid if you ask me - but that's the only way around us having to vat register and raise prices on everything for everyone.

If you think you might be affected by this law - do read up about it now as it is happening SOON!

Emma
Emma from Sunny Sussex, UK
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MelMcG

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Re: Do you sell e-books or tutorials?
« Reply #1 on: November 29, 2014, 08:31:21 PM »
Wow what a farce!! 

Mel  :)

Carrie

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Re: Do you sell e-books or tutorials?
« Reply #2 on: November 29, 2014, 09:28:04 PM »
How absolutely ridiculous  :(

ejralph

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Re: Do you sell e-books or tutorials?
« Reply #3 on: November 30, 2014, 10:11:09 AM »
Oh and they are on record as saying they want to extend this to the sale of physical goods "very quickly" too.

So basically if you sell ANYTHING to EU countries soon - you could be liable for collecting and paying VAT at 27 different rates.

Unless people spread the word about this and kick up a stink - we won't know a thing until it comes into force. Because the vat office had NO idea that we micro-businesses existed. They naively thought that only large and vat registered companies trade into Europe.

But I truly believe in people power. Unless us small micro-businesses stand up to be counted, no-one will fight our corner for us. Remember the poll tax - people put their foot down about that one and they can about the way these vat laws are headed too

Emma
Emma from Sunny Sussex, UK
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MelMcG

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Re: Do you sell e-books or tutorials?
« Reply #4 on: November 30, 2014, 10:27:38 AM »
Emma, is there a petition or something somewhere??

Mel  :)

ejralph

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Re: Do you sell e-books or tutorials?
« Reply #5 on: November 30, 2014, 11:13:47 AM »
There is this petition
https://www.change.org/p/vince-cable-mp-uphold-the-vat-exemption-threshold-for-businesses-supplying-digital-products?recruiter=36681676&utm_source=share_petition&utm_medium=facebook&utm_campaign=autopublish&utm_term=des-sm-no_src-no_msg

Although I don't really know what use it will be - as these are european laws rather than UK ones alone.

But it does allow us to at least have a voice and say that micro-businesses exist, that we matter and that the vat exemption thresholds are vital to our survivals

Emma
Emma from Sunny Sussex, UK
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www.ejrbeads.co.uk/shop Art beads, clay & jewellery supplies

Karolina.S

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Re: Do you sell e-books or tutorials?
« Reply #6 on: November 30, 2014, 12:25:13 PM »
Where does this law come from? Is it from Brussel?
Timrċ in the north of Sweden. Always with my polymer clay eyes open.
http://www.flickr.com/photos/77424684@N04/ http://www.facebook.com/Hobbyrian

ejralph

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Re: Do you sell e-books or tutorials?
« Reply #7 on: November 30, 2014, 12:47:35 PM »
I guess so - wherever they decide on these eu-wide laws.

Emma
Emma from Sunny Sussex, UK
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Karolina.S

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Re: Do you sell e-books or tutorials?
« Reply #8 on: November 30, 2014, 08:02:56 PM »
 :-X
Timrċ in the north of Sweden. Always with my polymer clay eyes open.
http://www.flickr.com/photos/77424684@N04/ http://www.facebook.com/Hobbyrian

MelMcG

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Re: Do you sell e-books or tutorials?
« Reply #9 on: December 01, 2014, 11:59:20 AM »
Thanks Emma.

Mel  :)

Karolina.S

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Re: Do you sell e-books or tutorials?
« Reply #10 on: December 01, 2014, 12:00:52 PM »
:) Yes thank´s
Timrċ in the north of Sweden. Always with my polymer clay eyes open.
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MilleD

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Re: Do you sell e-books or tutorials?
« Reply #11 on: December 01, 2014, 01:06:32 PM »
At least it keeps us accountants in business though eh?

 ;D >:(

ejralph

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Re: Do you sell e-books or tutorials?
« Reply #12 on: December 01, 2014, 01:44:37 PM »
At least it keeps us accountants in business though eh?

 ;D >:(

lol - if accountants are able to charge for saying "we don't know wtf is going on either" then yeah! If not, you're all in trouble!

Emma
Emma from Sunny Sussex, UK
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MilleD

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Re: Do you sell e-books or tutorials?
« Reply #13 on: December 01, 2014, 03:52:09 PM »
At least it keeps us accountants in business though eh?

 ;D >:(

lol - if accountants are able to charge for saying "we don't know wtf is going on either" then yeah! If not, you're all in trouble!

Emma

Yep, they can charge for that.  Just a sentence that starts with "it depends.." covers all bases.

 :)

AfroByte

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Re: Do you sell e-books or tutorials?
« Reply #14 on: December 03, 2014, 05:50:55 PM »
This is totally rediculous. This is stifling small business.
Not happy about that at all.
I bet the media will not pick up on it until 31 Dec or 1 Jan and then its too late.

To register for VAT with all those countries could take weeks of time and effort. Then having to administer it and to then pay for the bank charges to send small amounts of VAT tax money to those countries. Total nightmare.

I do a lot with the change.org and sign up for a lot of causes and quite a number were successful. Please do click on the link and join up.