Monday, 12 October 2015

VAT's & price rises

A bit of a monday morning rant.....

About a year ago, someone on Ravelry discovered that there were new digital sales European VAT tax laws/rules planned to come into effect on January 2015 and luckily for all involved told the community.
The VAT people claimed that everyone who would be affected should have been notified, however no one knew anything about it.
The rules are incoherent, contradict other rules/laws and absolutely ridiculous, they are supposed to force the big international companies like Amazon stop evading European VAT, but they apply to all businesses world wide that sell digital downloads to customers in Europe regardless of how big or small the business is.
I could write a very long essay trying to explain all the details, but it would be very boring for you to read and even if you managed to read to the end, you would be far more confused you were before you started!

The main result is that  knitting & crochet designers have had to increase their pdf patterns prices.
Designers have 3 options on how to deal with VAT
1 - Absorb the cost of the VAT and keep the pattern price the same, which means a big drop in income for the designer.
2 - Raise the pattern prices to cover VAT, this means the price goes up for everyone.
3 - Leave the pattern prices as they are, and charge VAT on the European sales.
Whichever option the designer chooses is unfair on themselves or their customers.
Sadly I rely on pattern sales to pay the bills and so can't afford a drop in income, so I have chosen option 3, it means the prices have risen for my European customers, but stays the same for all my international customers. Its unfair if you live in Europe, but at least some of my customers don't suffer.

The reason why I have written this blog post is to answer a thread on Ravelry
It was started by customer's who weren't happy about the price rises, the thread has become very heated so I have chosen not to join in.

What I'm trying to say to you is "Please don't blame the designer's, its out of our control, if you want to have a rant, get in touch with your MP, MEP, VAT office, the IRS or anyone in power who you think will listen"

Now I've come to the end of my small rant about a big thing I'm going to leave you with a happy picture, to brighten your week :-)
Its my new Belladonna scarf, photographed on the wild and windy moor yesterday.

1 comment:

  1. Gorgeous scarf. I just will have to stop thinking about VAT or I'll get annoyed.