Saturday, 27 December 2014

Stupid EU Vat

Dear reader's

I'm sorry I haven't blogged for a while, we've been so busy dyeing clubs and wholesale that I haven't had any head space to compose a blog post that made sense.
I've also been trying to make sense and find a way through the new EU vat law.

So I'm afraid now I'm going to write a very boring post about the stupid new law that is coming in on the 1st of January, this new law will effect all of us and I want to explain what my plan is to cope with the law.

The law is as follows - from January the 1st 2015 all digital down load sales in the European Union will be liable for vat in the country that the customer lives, this means if you live in France and buy one of my patterns I have to pay the vat to the French vat office, this in turn means I need to be registered for vat in every European country I sell patterns to.
There are 28 countries in the EU, that means I would need to be registered for vat in 28 countries and fill out 28 different vat returns every 3 months!

The whole thing is ridiculous and unworkable, it has been in the pipeline for several years, however it wasn't made known to the little tiny fish like myself until a few weeks ago.
It has thrown the whole world of independent craft designers, musicians, writers, app developers etc etc into total chaos, anybody who sells a PDF or download will be liable to pay vat.
I know of numerous designers who are going to close their pattern shops and stop selling, or stop selling to the EU.
The big fish such as Amazon and I Tunes have known for a long time and have had time to come up with plans and strategies, its rumoured that the laws were designed to force them into paying the taxes they had managed to avoid.

However the wonderful Ravelry have teamed up with Love Knitting and so all my European customers will be directed to Love Knitting to buy my patterns.
Love Knitting will be selling directly to my customers, pay the vat, deal with all the associated paperwork, take their cut and then paying me the remainder.
Its not ideal, but its the only solution at the moment, so I am fairly happy.
So as a customer you don't need to worry, you can carry on buying my patterns without too much extra fuss.
You can find all my patterns HERE on Raverly, if you live in Europe you will be automatically directed to Love Knitting.

There are quite a few groups and forums that have sprung up from the chaos, small designers and other download business people have clubbed together to try and find a solution through the mess, there has been a twitter campaign, lots of threads in the shop keepers group on Ravelry, a very active campaign group on Facebook and several petitions trying to get the law makes to make allowances for the little people like myself.
I'm sure there are lots more groups that I don't know about, but these are the ones I have been involved with.

You can find more information here -

This is the Facebook group -

And if you want to help please sign one or both of the petitions below
Both petitions need lots more signatures before they are sent, unfortunately most people aren't interested or don't know anything about the new vat laws or don't think they have anything to do with them.
However wherever you live in the world if you have ever bought a pdf pattern, downloaded music or an app this new law will effect you in some way however small.

to PIERRE MOSCOVICI Commissioner for Economic and Financial Affairs, Taxation and Customs

And to President Obama