How many in here sell digital products and digital services to people in the EU (that includes Eire and the UK)? Get ready for incoming changes to EU VAT regulations that affect digital products and digital services supplied to EU residents. New regulations state that anyone who sells non-unique digital products to EU residents via a website shopping cart will be required to collect VAT at the buyers local rate (not the suppliers local rate) and pay that VAT to the buyers tax authority. This is known as Place of Supply VAT as opposed to Place of Service VAT (where the vendor taxes at his/her local rate). This affects software, WordPress theme templates, WordPress plugins, membership subscriptions, music files, videos and more. No one is quite sure how the EU will police VAT collection on a global level but the EU tells us it will be pursuing tax owed. Google Helpouts announced today that Providers from Ireland or the United Kingdom may only offer free Helpouts. Customers in the EU may only take free Helpouts.. Live tutoring sessions by video call shouldnt be affected by the new rules but maybe Google knows something about the regulations that the rest of us in Europe dont. Who is aware of the incoming EU VAT rule and what are your plans for dealing with it? By the way, it comes into force January 1st 2015. There is a campaign being run to try and get the new regs scrapped or at least to get implementation delayed.
Posted on: Sat, 13 Dec 2014 20:40:15 +0000
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