A (small) spanner in the works!

A new EU law has thrown a small spanner into the works for my business! The new regulations mean that I would have to pay VAT on all sales of my digital downloadable patterns to countries in the European Union, at the rate of the country where it is purchased. This means that at the moment selling my digital patterns as a downloadable PDF has become completely unviable for me.

Weave Knitted Facecloth PDF Pattern

So while Etsy work on a solution, namely for sellers to choose which countries they can sell to, I will be printing out my patterns and posting them to you! Hopefully this will be resolved soon because lots of small businesses are going to suffer as a result.

Chevron Knitted Facecloth PDF Pattern

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2 Responses to A (small) spanner in the works!

  1. Gail Stidolph says:

    Hi Again,
    My apologies I was wrong!
    I’ve just been reading up on this (luckily it doesn’t affect any of my clients ….yet!) and I can not believe what I’ve been reading! It’s a complete mess and with no sales thresholds in place!

    You were correct, your best bet is to sell paper patterns only, although HMRC do seem to be saying that for local (ie UK sales) they wouldn’t expect VAT to be charges/paid by those traders with income under the VAT threshold (currently 81,000), so that might be a help!

    You have my sympathies

    Gail

    • Hi Gail,

      Thanks for your advice, its all very confusing. Apparently the UK government have said that they would allow files to be emailed, just not downloaded instantly. I am going to try and get this in writing before I pursue that avenue though!

      Georgina

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