Wednesday, December 31, 2014

Info for pattern buyers in the European Union

For those unaware of it, starting January 1, 2015 (i.e. tomorrow), there will be tax changes in effect in the EU. Basically, it appears that their Value-Added Tax (VAT) needs to be collected based on the location of the buyer as opposed to the seller, and apparently, electronically delivered goods like my patterns count for this sort of transaction.

I am in no position to be able to collect VAT myself, so this is a problem.

Fortunately, Ravelry has come up with a solution that will allow me to continue to sell patterns online there without having to worry that Big Bad Tax Officials might come after me if any of my buyers are in Europe. Starting tomorrow, absolutely nothing will change for people trying to purchase my patterns through Ravelry who aren't in the EU. For buyers in the EU, however, the purchases will be routed through a company called LoveKnitting, who will handle all the collection and forwarding of the VAT and it will be tremendously simple. Ravelry and LoveKnitting have even set it up so that EU buyers who are routed from Ravelry through LoveKnitting for their pattern purchases will have those patterns in their Ravelry library! (Ebooks, however, are an exception.)

Got questions? More information for customers is available here.

Unfortunately, however, neither Etsy nor Craftsy have done anything similar for their sellers, nor even provided any kind of tool that would allow me to continue selling to non-EU people so that at least some customers wouldn't have to be affected. Therefore, I've had to take down my patterns from those websites. My sincere apologies if this inconveniences people. :( I promise that if the VAT rules change or if either of those platforms do start providing tools or alternatives for sellers, I will certainly put my patterns back up for sale there as soon as I can.

All that being said - and I do mean this unironically :) - Happy New Year, everyone!

3 comments:

Middle said...

From everything I have read on the matter, it seems this VAT change was not very well thought out. It's only crippling small independent business and limiting purchase options for buyers.

Kathleen said...

I completely agree with you!

Bronchitikat said...

Trust the EU to come up with ill-thought-through, complicated legislation.

Time was when the EU was about making it easier for member countries to trade with each other, and outside countries. Wonder what happened?