Over the last few weeks I have been trying to get my head around the changes to VAT. (Very Angry Tax). It is boring so I'll give you the quickie version.
- If you sell digital products to anyone in the EU (European Union) you must register, calculate, collect and pay VAT (Value added tax) in the country of your buyer. (yep PDF sewing patterns included).
- You will need to register for this, in each country separately.
- You will require two pieces of evidence proving where your customer is from and you will need to keep this information and the transaction information for ten years.
So if I have customers in the UK I must comply to the UK VAT thresholds and percentages, Sweden -different again, France, different again and so on and so forth.
I have followed about eleventy million threads and forums on this topic. I thought I had some answers but they have contradicted and counter-contradicted on a daily basis.
I cannot see any possible way to make this work - and to be perfectly honest folks, I just want to make stuff. I don't want to be stressing over this crap and keeping peoples private information or spending my time learning about tax law.
As of January 1st I will no longer be able to offer PDF sales to people from the EU. I will be limiting the locations available within my Big Cartel store to reflect this.
I am really sorry guys. I only ever began PDF sales because so many people don't have stockists of paper patterns near them or even in their country.
If you want to grab anything from the shop before January 1st, just enter the code VATSUX into the checkout and you will receive 20% off your order no matter where you live.
I'll keep you posted.