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Author Topic: EU VAT changes  (Read 10420 times)

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« on: March 23, 2015, 15:02 »
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This has come up over and over again but I don't think there is a specific thread going into the details.

I am UK based and sell direct. I thought I didn't have to worry too much as I don't sell digital goods, but license intellectual property. That has always had a different category and always has been supplied in the customers country according to HMRC (as outlines in the VAT act Scedule 4A Para 16(2)(a) if anyone wants to look it up).

I almost jumped out of my skin when I saw stock images listed as a specific example under the rule changes. I felt a bit better when I read that there was a grace period until June to get our ducks in a row.

So what is everyone going to do? Clearly getting VAT registered just for the few EU sales I make would be insane. Is there any solution other than just closing up shop? Can paypal be set up to restrict sales to EU member states? I could then just put up a message saying sorry, but thanks to the crazy tax laws I can't sell to other EU citizens?


« Reply #1 on: March 23, 2015, 15:10 »
+2
This was in one of the other threads but I'll repeat here. I'm not shutting up shop but have put a notice in two places that I do not support sales to the EU and do not collect VAT. One on the home page, and on the cart page it says it again "EU visitors: Please note this site does not handle or collect VAT. "

I can't enforce the restriction, but I'm not sure that's such a big issue.

« Reply #2 on: March 23, 2015, 15:17 »
+1
Thanks Jo Ann. I always thought you were based in the US, are you in the EU or does this impact US sellers too?

I'm pretty sure I will be going down the same route as you, if I continue to get people buying from the EU I will then have to reconsider shutting up the site. It really isn't worth getting the tax man's back up over a few dollars!

« Reply #3 on: March 23, 2015, 15:43 »
+1
Plenty on this subject here...

http://www.microstockgroup.com/general-big-6/eu-vat-changes
for some reason this link works only if you copy and paste it in your browser.  ???
« Last Edit: March 23, 2015, 18:18 by KnowYourOnions »

Semmick Photo

« Reply #4 on: March 23, 2015, 16:11 »
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Plenty on this subject here...

http://www.microstockgroup.com/general-big-6/eu-vat-changes!/msg402665/

for some reason this link works only if you copy and paste it in your browser.  ???


You need to edit the URL in the comment code because the part after the exclamation mark is missing from the actual URL.

« Reply #5 on: March 23, 2015, 16:34 »
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Thanks Jo Ann. I always thought you were based in the US, are you in the EU or does this impact US sellers too?

I'm pretty sure I will be going down the same route as you, if I continue to get people buying from the EU I will then have to reconsider shutting up the site. It really isn't worth getting the tax man's back up over a few dollars!

I am in the US, but as I understand it, I should be collecting and remitting tax on sales to EU residents based on their location, not mine. Which I'm not about to do (unless PayPal stepped in to do it for me, but I've heard nothing about that happening)

dpimborough

« Reply #6 on: March 23, 2015, 16:40 »
+3
Well I'm VAT registered and thats because 99% of my work is business to business.

There is no bloody way that I am going down the route of recording sales in over 38 VAT zones in the EU.

Like wise I am not going to use the MOSS scheme

https://www.gov.uk/register-and-use-the-vat-mini-one-stop-shop

I think it is disgusting that previously unregistered sellers now have to register for VAT even if they are under the VAT threshold.

So the EU can go suck eggs  ;D

Any private EU citizen will just be told I am not going to sell to them.

Thankfully and oddly this crap scheme has no effect on B2B sales.

« Reply #7 on: March 23, 2015, 16:57 »
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I believe that there may (MAY) be a relatively simple middle route for people who do direct sales (especially if they are outside of the EU):

That would be to collect, and validate (if only the format), the VAT registration number at the point of sale. Because AFAIK the requirement to collect VAT only applies if the client is not registered.

Then you would potentially only have to reject sales if the client does not provide a registration number. And most businesses will be VAT registered. So you require a VAT registration number.

Not definite on this - but I think it may offer a way ahead. The Symbiostock people could pool their resources and get a definite legal-accounting opinion from which a technical specification could be written.

ETA: EU based sellers could do more or less the same. But there may be record keeping requirements which have to be followed.

« Reply #8 on: March 23, 2015, 17:55 »
0
Plenty on this subject here...

http://www.microstockgroup.com/general-big-6/eu-vat-changes!/msg402665/

for some reason this link works only if you copy and paste it in your browser.  ???


You need to edit the URL in the comment code because the part after the exclamation mark is missing from the actual URL.


No, it's all there (attachment)...but for some reason the browser is not recognizing it...hmmm

Semmick Photo

« Reply #9 on: March 23, 2015, 18:05 »
+1
Its not, its missing from the first part

« Reply #10 on: March 23, 2015, 18:20 »
+2
Its not, its missing from the first part


You right... now it's fixed...Thanks Semmick!

http://www.microstockgroup.com/general-big-6/eu-vat-changes


« Reply #11 on: March 23, 2015, 19:04 »
+2
From what I read, there is no grace period for collecting the VAT for the transactions the new rules apply to.  It is only to give people time to put in a system to prove the place of supply.  That's why I stopped selling on my site, not that I had many sales anyway.

Have a read of this.
http://www.theguardian.com/small-business-network/2015/jan/06/grace-period-businesses-affected-new-eu-vat-laws

« Reply #12 on: March 24, 2015, 06:06 »
0
From what I read, there is no grace period for collecting the VAT for the transactions the new rules apply to.  It is only to give people time to put in a system to prove the place of supply.  That's why I stopped selling on my site, not that I had many sales anyway.

Have a read of this.
http://www.theguardian.com/small-business-network/2015/jan/06/grace-period-businesses-affected-new-eu-vat-laws

I've just looked over my sales since 1st Jan and it looks like all US except for one in Russia and one in the UK so I am okay so far. I will get a prominent message up on the site like Jo Ann suggested and see how that goes I think.

« Reply #13 on: March 24, 2015, 06:13 »
+3
I will get a prominent message up on the site like Jo Ann suggested and see how that goes I think.

Why not, at least, have it so that a buyer cannot proceed to the payment page unless they either confirm that they are non EU or else enter their VAT registration details ?

« Reply #14 on: March 24, 2015, 06:28 »
0
I will get a prominent message up on the site like Jo Ann suggested and see how that goes I think.

Why not, at least, have it so that a buyer cannot proceed to the payment page unless they either confirm that they are non EU or else enter their VAT registration details ?

To comply and sell to other EU countries I would have to get VAT registered in the UK so I can use the MOSS scheme which is way too much hassle for the payoff.

Getting them to verify they are non EU is a great idea, I have to speak to the person who runs my site though, as I suck at that kind of thing.


 

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