Over the last few months, you may or may not have heard about some changes to the EU VAT system (often referred to as VATMOSS). In a nutshell, the new rules mean that as of January 1st 2015 anyone, anywhere, selling digital products to an EU customer must display and charge VAT at the rate of the customer’s country, must collect details about the customer’s location, and must then keep these details securely for 10 years.
The rules have been introduced to prevent large companies from basing themselves in low-VAT countries to reduce their VAT bill. All sounds good so far. Unfortunately there is no threshold on digital sales above which the rules come into effect. Previously in the UK, for example, we were able to earn up to £81,000 before registering for and paying VAT. That threshold is now gone on digital sales to EU customers. In effect, a seller like myself making a £1.80 sale of a digital paper pack to a customer in Germany is now held to the same level of admin and accountability as Amazon. This is sadly unworkable and small sellers are unable to comply with some of the current requirements, we’re trying to get those changed.
Without going into too many other details, all you as an EU customer need to know is that this affects you, that we sellers are trying our very best to sort something out, and we’re all extremely sorry that so many places have had to (hopefully temporarily) block EU sales.
I just want to know if I can still buy from you?
Short answer: yes. Send me a contact message with your email address and the item(s) you’d like to buy and I can manually raise a Paypal invoice for you. Only automatic purchases are covered by this new law, so emailing files to you is still ok! There will be a delay with this method as everything is done manually, but it’s the best I can offer my non-UK EU customers at this time.
How can I help?
So far the campaign against these ridiculous new rules has in fact made some good progress. There’s still plenty to do, of course, and the best place to start is EU VAT Action. There you’ll find a lot of useful information on what exactly these rules mean for you, ways you can get involved in the campaign, and reports and updates on our progress.