33350✽
I just got an email from a site Fat Cats, who sells on crafty and she is closing down because of the new Vat Rate for EU
From January 1st, EU businesses have to start charging their customers the VAT rate of their country of residence. The customers residence, not the business residence.
Not just EU based businesses, but anyone selling a digital download to the EU.
Records have to be kept for 10 years, and the taxes have to be paid to each EU country quarterly. The burden of proof, falls upon the business owner, not to mention any differences in currency change during that time period.
How does this effect everyone?
Comments (9)
173695✽
16707✽
Leave it to governments. Wonder what they'll do to business that are not located in the EU that sell to customer that do live in the EU.
169064✽
This will probably make unwelcome changes for everyone. So sad to see this happen.
4309✽
21543✽
by
susiesembroidery
18 Dec 2014
+2✽
The more governments meddle the less income the people generate. Because of these taxes a lot of companies will not be trading anymore. What a shame!
140717✽
This is confusing - the threshold turnover above which UK businesses have to pay VAT is currently £81 000. I can't imagine making this much money selling embroidery designs!
3 comments
I'll bet the thoughts of the paperwork to prove you did not make 81,000.pounds was overwhelming.
Keep at it Sue and you might
Don't know if there's a threshold here for businesses, but if If I could ever earn 81,000 pounds selling designs I would get my Chamber of Commerce and VAT numbers and start selling straight away, 21% VAT and other taxes not withstanding.
299559✽
what a very sad thing for them to have to do. It will certainly confuse on line shoppers & may also limit the purchases made.
85867✽
I would not be surprised that the USA does not start charging sales tax to recipients who buy on line. Which would be a nightmare for seller to keep up with as each state has it's own rate and each county within the state has it's added rate. Many small Mom and Pop stores would love this as it would make their prices more competitive. Kay
145305✽
this is confusing. If I buy something through internet I have to pay 21% VAT over price and handling and postage, plus custom duties; if I have a business and I sell I have to charge the same percentage (which would be included in the price the customer pays) and I have to pay the total amount each quarter. Simple bookkeeping would suffice. and I could reclaim VAT on the items I need for my business, including my software upgrades and my embroidery machine and materials needed for testing.