New EU VAT law affects small business

[Arpeggio]

It's a new law coming in Jan 1st 2015 that sales of digital products to EU countries will have to charge VAT according to the country of the customer. This law is supposed to deal with the issue of large companies basing themselves in low tax places such as Luxembourg....BUT....it has a 0 threshold, which is the part I can't fathom.

http://www.theguardian.com/small-bus...cro-businesses

I searched for relevant terms on here but couldn't find anything so assume it has not been mentioned yet.

[mwenz]

Yeah, I think this is the first mention here. There's a thread on the Serif forum about it someone started a few weeks ago.

It really is a bone-headed law. It can only hurt smaller businesses and will have little to zero impact on larger ones who already deal with certain aspects of this in their normal day to day business.

I feel sorry for the smaller businesses who, say, sell eBooks through the EU. Or PDfs, or...anything electronically that fits the target of the law.

Mike

[Arpeggio]

You can say that again. The law is a bit ambiguous too, as far as I can tell I'd not be liable but who knows. Here's a list of digital fulfillment services that deal with it for people who sell digital stuff...

http://www.fastspring.com/
https://www.paddle.com/
http://www.mycommerce.com/esellerate/pricing
http://www.avangate.com/pricing/
https://www.tradebit.com/layouts/rates_selling.php
http://www.clickbank.com/