Author Topic: proposed changes to VAT exemption for sellers of digial products  (Read 6211 times)

Jolene

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proposed changes to VAT exemption for sellers of digial products
« on: November 18, 2014, 12:05:39 PM »
This is only a link for a petition but this is the first time I have heard of this proposal - https://www.change.org/p/vince-cable-mp-uphold-the-vat-exemption-threshold-for-businesses-supplying-digital-products

If this change come in then those of us who sell tutorials online will have to take them down or be forced to become a VAT registered business no matter how small our turnover - unless there is a way to barr European buyers  :-\

More research required  I think....does anyone else know ought about this?

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nemeton

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Re: proposed changes to VAT exemption for sellers of digial products
« Reply #1 on: November 18, 2014, 12:58:02 PM »
Everyone sign the petition, and also go and vote on the Etsy Q&A thread, then perhaps we'll get a response from the Etsy shipping team: https://www.etsy.com/uk/teams/7722/discussions/discuss/15604845/page/2?post_id=250474276 (it's the question directly above mine)

There is currently no way to block particular countries from purchasing digital items on Etsy, so come January those of us who sell digital tutorials on Etsy will have to go back to sending hardcopies by snailmail, even to the US and Australia where we could perfectly well continue selling digital items if Etsy would make it possible for us. Sending attachments by email still counts as 'digital' supply so it isn't exempt from the legislation.

No way am I going through the process of VAT registration and quarterly returns for the pathetically small sums involved.

And I don't expect my US and Australian customers to be prepared to pay twice as much (plus shipping) for something that will take a fortnight to arrive. They'll just buy a digital download from a US or Australian shop.

Grrrr  >:(

Cornish

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Re: proposed changes to VAT exemption for sellers of digial products
« Reply #2 on: November 18, 2014, 01:28:27 PM »
Signed and voted as this could be a problem for me for buying doll patterns and even selling my own in the future.

Pandanimal

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Re: proposed changes to VAT exemption for sellers of digial products
« Reply #3 on: November 18, 2014, 01:59:38 PM »
I signed as well. What a ridiculous idea!  I agree with the guy who said "make the big companies pay their taxes and stop trying to raise extra revenue from the little people."

jille

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Re: proposed changes to VAT exemption for sellers of digial products
« Reply #4 on: November 18, 2014, 02:22:52 PM »
Signed, how proposterous

nemeton

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Re: proposed changes to VAT exemption for sellers of digial products
« Reply #5 on: November 18, 2014, 04:51:46 PM »
Someone on Etsy has suggested we might be able to use email as a way round it - not for EU countries but for overseas - if we set the item type back to 'physical' and email out the tuts, we can limit which countries the item 'ships' to (even though we're emailing and shipping is therefore free) and then just email to buyers in non-EU countries and snailmail to those within the EU. Still a PITA and there will still be lots of complaints from buyers who were expecting instant downloads, but better than using snail mail for everything!

Tinker

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Re: proposed changes to VAT exemption for sellers of digial products
« Reply #6 on: November 18, 2014, 05:17:02 PM »
Signed, ridiculous!

Lynne I'd just put a note in the description that the tut will have to be emailed until Etsy put a change in to cover the situation. If enough people do that surely Etsy will have to listen?

Purple Cobwebs

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Re: proposed changes to VAT exemption for sellers of digial products
« Reply #7 on: November 18, 2014, 05:28:10 PM »
My understanding is that the problem is that some EU countries require all businesses to regster for VAT, no matter what their turnover, unlike here in the UK where you only have to register once your turnover reaches 81,000.
Thus the EU want to level the playing field and make anyone in the UK selling digital items register for VAT too.
So it's not Etsy, it's the blummin' EU beaurocrats again!!!!
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Izzybeads

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Re: proposed changes to VAT exemption for sellers of digial products
« Reply #8 on: November 18, 2014, 05:56:13 PM »
snarl...signing....

nemeton

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Re: proposed changes to VAT exemption for sellers of digial products
« Reply #9 on: November 18, 2014, 06:02:54 PM »
Tinks, customers don't read descriptions and Etsy don't care  :( We may or may not get a reply from Etsy via their forums but I'm not holding my breath. I'm thinking of giving away the patterns for free to generate goodwill and 'grow my brand' while moving over to selling more supplies, kits and bead mixes. Rather than dealing with a raft of enquiries, complaints and confusion caused by both having to treat EU customers differently and not selling instant downloads any more!