Friday, 28 November 2014

VAT ALERT!



Usually I find out about new legislation far too late to do anything about it, but this time, thanks to Facebook, I'm up there with the news! There is a fiendish plan afoot to place VAT on digital products - yes, that will mean e-books!

New EU VAT regulations come into force in Jan 2015.

Micro-businesses selling Ebooks direct to customers will forfeit their VAT exemption threshold by doing digital business in Europe.

"From 1 Jan 2015, the new ruling means that should you make a sale to the EU (how one can prevent that with online services is not clear) from the first £1 of revenue your business earns you will need to be VAT registered in the UK and under the VAT MOSS Europe-wide scheme – meaning that you will immediately have to apply VAT to all your services, including those in the UK.

Furthermore, this this means a quarterly obligation to submit VAT returns, increasing the accounting burden significantly; as well as, the cost and complexity involved with meeting the letter of the law regarding the capture and retention of evidence of its customers’ location will bring (which needs to be retained for 10 years)."

In 3 years I have sold less than a dozen books to readers in Europe.
I don't know how I can stop them buying, and I certainly don't want VAT on my other sales in the UK.

Click on the link and sign to petition against it -
https://www.change.org/p/vince-cable-mp-uphold-the-vat-exemption-threshold-for-businesses-supplying-digital-products

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