Social Media has been buzzing with posts regarding the new EU tax laws that will take affect in the new year. These laws require every business that sells digital products on line to add, manage and pay separate taxes to 28 different countries within the EU. This is not feasible for the small amount of sales I make selling patterns. The impact to the small business and especially craft business is great. There has been talk that Asia, US, CAN and AUS will follow. What does this mean? I can only sell through my e-shop to a restricted number of countries. At this time, I cannot sell through Etsy and Craftsy using PayPal as they will take no responsibility for the collection, management and payment of the tax to the 28 countries of the EU. This law was created to stop large corporations from setting up on-line digital product sales in countries where no tax was imposed. This new tax will be worth billions to the EU. Therefore on December 31st, 2014 all my digital patterns will be removed from Craftsy and Etsy in preparation of the new EU VAT tax laws that will be enforced worldwide from January 1st, 2015. I’m currently working on a ‘My Shop’ section on my blog. Here you can go and order the printable PDF patterns of my quilts and my block tutorials that I currently have for sale in my Craftsy Sale. Within 48 hours of your purchase I will email these patterns to you. Free patterns will still remain in my Craftsy store. I’m hoping Craftsy and Etsy can create updates to make selling patterns via their sites feasible again as I know it’s nice to be able to download patterns immediately after purchase. But at this point, this is what I feel I have to do to this to comply with the new law and still be able to run my business. Please contact me if you have any questions or concerns.
Ive been reading a lot about VAT. What platform are you using for your shop?