Some of you will be aware of a bloody mad law about selling digital goods (like Sacred Hoop) coming in on January 1st about charging VAT on sales to Europe at the VAT % for each company, and because of that having to register for VAT in the UK so having to charge it here. This will have a huge effect on Hoop and lots of micro business, people selling ebooks, music downloads, software etc. There is a £0 threshold so even a sale of £0.10 requires VAT to be charged and paid. Well, the laws have just got even madder. In an attempt to make it easier for micro businesses the UK government have changed the laws and give a loop hole to avoid charging VAT. The loop hole is - It is NOT a digital service if the customer is sent the digital file (or presumably a download link) in a personal email to them. However it IS a digital service if they get the digital item as an automatic download or get a download link in an automatic email. This is areal law, politicians and civil servants really have sat down and thought this crap up. Anyway, it gives sacred hoop a get out, I will simply send each new European subscriber a personal email with the download link ... Thus making it not VAT rated. Full details of the law here.. This paper released 2 days ago by the UK government https://gov.uk/government/publications/revenue-and-customs-brief-46-2014-vat-rule-change-and-the-vat-mini-one-stop-shop-additional-guidance/revenue-and-customs-brief-46-2014-vat-rule-change-and-the-vat-mini-one-stop-shop-additional-guidance
Posted on: Fri, 12 Dec 2014 07:45:35 +0000
Trending Topics
Recently Viewed Topics
© 2015