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Snappyscrappy sells designer resources through Craftsuprint.
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Wednesday, 19 November 2014
NEW VAT REGULATION FROM 1ST JANUARY 2015 AFFECTING EVERYONE IN THE UK SELLING DIGITAL DOWNLOADS INCLUDING ANYTHING TO DO WITH SCRAPBOOKING/DESIGNER RESOURCES AND EVERYTHING ELSE DIGITAL TO ANY COUNTRY IN THE EU!!

THIS INVOLVES SUPPLIES OF BROADCASTING, TELECOMMUNICATIONS AND E SERVICES (DIGITAL SERVICES)

HMRC have brought in new rules that will apply to everyone who sells any digital products online from their own online store/website or blog in the UK to anyone in the EU!


 THIS AFFECTS EVERYONE IN THE SCRAPBOOKING WORLD WHO OFFERS DIGITAL DOWNLOAD SERVICES THROUGH  ONLINE STORES, WEBSITES AND BLOGS.



From January 2015 anyone in the UK selling digital downloads online directly to anyone in the EU will have to register for VAT no matter how little you make from your sales. This includes all digital scrapbooking supplies/services, designer resources, cards, templates, web design, installation of templates and other services that you sell online from your own website/online store directly to your buyer!!!


This is going to hit the small home grown business person worst of all and is important that you are made aware of this new VAT regulation.

Prior to January 2015 VAT applied to the buyer not the seller but it will switch to the Seller instead!

This means that whenever you sell to someone in the EU you will have to pay that country's rate of VAT. For example if you have a buyer from Hungary you will then have to pay that country's VAT rate of 27%.

Countries in the EU all have diferent VAT rates and there are something like 30 odd countries in the EU so you can imagine how this already is going to affect you.

Anyone who continues to sell to the EU from January will have to register for VAT no matter how little you are earn from  your sales.



Unless you are lucky enough to earn enough and are registered for VAT and wish to continue selling to the EU you can join the MOSS. See link at bottom of the page.

Those of us who create digital downloads who are only a small concern, working from home, earning a little extra money will not be eligible to register for VAT. This only applies to those who earn up to £81,000 so this will affect many designers but there are some options.

If you are from the UK and you only sell to the UK this does not affect you.
If you are from the UK and sell outside the EU this does not affect you.
This means that you can sell to the UK and all other countries outside the EU without registering for VAT.

If you are trying to find a work around this, there are not many choices. You can either get hosted by another platform/market place who will take on the burden of the new VAT regulations, or you can block the EU countries from your own store if you are able to do that.

If you are lucky enough to earn enough, register for VAT and join the MOSS (Mini One Stop Shop).

WHAT YOU CANNOT GET AROUND!!
If you change your store items to physical (not digital) and have to email the buyer their item, or send them a link to download the item, this is still a digital download and you are therefore liable to VAT.

If you use Paypal buttons on blogs or websites and a customer purchases something from you from the EU but you have to email your customer giving them the link or image to download, this is still a digital download and you will therefore be liable to pay the VAT.

You cannot advertise instant downloads and then tell your buyer from the EU that you will email the download link or image. Apart from being illegal it is sill a digital download.

You cannot change your store from Digital to Physical and then direct your buyer to another website to download the items.

You cannot offer membership services and then offer free downloads.

Basically wherever you are selling digital downloads, you cannot use other sources to send the buyer their digital product unless you give it to them physically.

Physical items are not included in this new VAT Regulation!

If you wish to continue to sell to the EU you will have to make sure your store can handle all the different rates of VAT for all the different countries in the EU and register for VAT no matter how much you earn. It could be as  little as £20 a year or £5000 a year . If you don't comply with the new VAT regulations you could be heavily fined by whoever rules the particular country you have sold your digital downloads to and fines could be in excess of £10,000.

Those with online stores who do not want to sell to the EU or don't want to register for VAT because of all the hassle that comes with it, should block all EU countries if you can and make sure you do this before January 2015.

To read more on this please click the link below.
CLICK HERE TO READ NOTICE FROM HMRC




My Etsy Store

Snappyscrappy now sells through
ETSY

Just click the link below to visit

Craftsuprint

Snappyscrappy now sells through Craftsuprint.com
"Made by Marie"

Snappyscrappy.com

CU MEMBERSHIP
If you wish to use my CU resources/elements etc for your commercial projects please visit my main website where you can purchase your Membership. Membership is for a lifetime and only paid members are allowed access.

All designer resources/element sets etc can be used for all your commercial projects including all types of card making, other paper crafting projects and so much more.

Please visit my main website at:-
SNAPPYSCRAPPY.COM


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Snappyscrappy is licensed to use graphics purchased from Folk Art Designs
now owned by http://craftsuprint.co.uk/

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