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New EU VAT Legislation from Jan 1st 2015

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New EU VAT Legislation from Jan 1st 2015

Postby Henry Olonga » Wed Dec 31, 2014 2:51 pm

Haven't seen this posted here ( if it has forgive me ) but this affects us all guys and is VERY IMPORTANT from tomorrow. :x . Acustica Audio and all third party developers who are based in the EU or sell to the EU are affected if I am reading it right. In their attempts to stop the big corporations from basing themselves in lower tax regions they have captured the little guys in a beaurocratic nightmare. And the big boys can handle it anyway.

So for those who are unaware what it is all about - just some snipppets from the web

http://www.crunch.co.uk/small-business- ... -payments/

http://rachelandrew.co.uk/archives/2014 ... t-changes/

http://www.theguardian.com/small-busine ... businesses

http://www.icaew.com/en/technical/tax/t ... ng-in-2015

Discuss. I have said in my own thread that I may have to sell on physical media until I speak to my accountant. :?
Last edited by Henry Olonga on Wed Dec 31, 2014 2:59 pm, edited 3 times in total.
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Re: New EU VAT Legislation from Jan 1st 2015

Postby giancarlo » Wed Dec 31, 2014 2:56 pm

yes....
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Re: New EU VAT Legislation from Jan 1st 2015

Postby Henry Olonga » Wed Dec 31, 2014 3:00 pm

If you purchase from outside the EU then you are unaffected by the way. ;)
I use wordpress and there is a healthy discussion there too

https://wordpress.org/support/topic/112 ... compliance
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Re: New EU VAT Legislation from Jan 1st 2015

Postby AlexB » Wed Dec 31, 2014 8:00 pm

By my side: in Italy is not active yet...
Mix with the ears, not with the eyes...
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Re: New EU VAT Legislation from Jan 1st 2015

Postby richie43 » Wed Dec 31, 2014 8:53 pm

I have been reading little snippets of this already, but thanks for posting some more cohesive info all in one forum. This is really upsetting. So often when i encounter some disturbing news, I can read the finer details and start to see how it's not as bad as I first thought...Not so this time; the more I read the worse it seems. I sure hope a better solution arises..... :(
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Re: New EU VAT Legislation from Jan 1st 2015

Postby Henry Olonga » Thu Jan 01, 2015 12:46 am

This is the most comprehensive write up I have seen

http://blog.sitesell.com/2014/12/defini ... rules.html

Seems like sending the links manually may make one exempt.

https://twitter.com/CoincidentalMus/sta ... 1199610881
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Re: New EU VAT Legislation from Jan 1st 2015

Postby richie43 » Thu Jan 01, 2015 3:25 am

Henry Olonga wrote:http://blog.sitesell.com/2014/12/definitive-guide-new-eu-vat-rules.html

Seems like sending the links manually may make one exempt.

https://twitter.com/CoincidentalMus/sta ... 1199610881


Wow...that would at least a great loop-hole for some. I would be careful about spreading that around on public forums for fear of the "powers that be" realizing the loop-hole exists and change legislation again....yikes.
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Re: New EU VAT Legislation from Jan 1st 2015

Postby kindafishy » Thu Jan 01, 2015 6:14 am

I am admittedly a bit ignorant on this so forgive me if I am asking a stupid question, but could a North American company set up a shop and "source" all of it's products from Acustica and third party developers to sell into the EU, thereby avoiding this location dependent taxation?

You know, the NA company/store sells the products, so you developers are not selling directly, but rather you are just the suppliers of the product. B2B I guess?

People in the EU can purchase things from a Canadian website for example correct? How do taxes work in that case?
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Re: New EU VAT Legislation from Jan 1st 2015

Postby richie43 » Thu Jan 01, 2015 8:29 am

kindafishy wrote:I am admittedly a bit ignorant on this so forgive me if I am asking a stupid question, but could a North American company set up a shop and "source" all of it's products from Acustica and third party developers to sell into the EU, thereby avoiding this location dependent taxation?

You know, the NA company/store sells the products, so you developers are not selling directly, but rather you are just the suppliers of the product. B2B I guess?

People in the EU can purchase things from a Canadian website for example correct? How do taxes work in that case?


The way I am reading this stuff is that it is not source dependent at all, that's the problem. The sellers are paying taxes (with the new legislation) based on where the buyers are. They already were paying source-based taxes, that's why the businesses were setting up "home base" in countries with lower taxes. The concept makes sense, they are going after the huge businesses that are paying too low of taxes compared to the earnings. But from what I have read so far, they didn't think the laws through too well and didn't foresee (or didn't care, but I am assuming the best case scenario) how devastating it could be for the much smaller businesses that are making their small profits on the way they saved in taxes under the old laws. Am I missing something?
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Re: New EU VAT Legislation from Jan 1st 2015

Postby david1103 » Thu Jan 01, 2015 4:59 pm

This is a *very* disturbing change for UK small online business. What are people actually doing about this?! No way am I registering for VAT when I am nowhere near the threshold. If you make one tiny slip up in the bureaucratic nightmare of tax returns you are fined out of existence.

I read that the easiest thing was to just not sell digital products to EU countries from the UK. I also read this could be seen as discrimination and be illegal.

The easiest solution is to get a 3rd party to sell your digital products and deal with the VAT. Of course, you are being forced to give away 1. YOUR money for a service you don't even want (as they charge fees) 2. Control of your mailing list and the image of your business. This is massive.

My Nebula course is sold on Udemy, a USA company, so they deal with all the VAT. I have set it up so people need to go through my web site to get a voucher to go to their site.

I want to sell things directly from my website but this whole change in the law has stopped me in my tracks for now :cry:
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