As most of you know by now as of 1st January 2015 the VAT threshold for business to customer digital sales, if your business and the customer are in different countries, will be 0, zilch, Nada, newt, nothing, this means a lot of micro businesses (such as mine) will have to start charging VAT to their customers. This will cause price increases for you and form filling and faff for the business, at best.
There is also the issue of burden of proof, it will be up to the business to determine, record, and keep the location of every customer. Today (Sunday) I went through my paypal receipts to get a rough guide as to the location of my customers (I was rather happy to see repeat customers), 13% were UK customers, 53% were from non EU countries, less than 1% (1 customer actually) was from within the EU (but not the UK), and a staggering 34% were UNKNOWN, that is a third of my sales that would require hunting for a location.
Now, after today’s geek out with the databases, oh how I love a database, I have discovered a work around that will lose minimal custom BUT I am going to have to relist every pattern, update Ravelry with links for every pattern, and lose my Craftsy and Etsy customers. At least I will still be selling patterns, which means I will be able to continue designing and writing new patterns.
We do have a little over a month to prepare for this, which is amazing as there has been no publicity what so ever and I only found out through another designer, this means we need to shout, and we need your help. On Tuesday 25th November 2014 we are hoping to draw attention to the affect this change will have on micro businesses by tweeting/facebooking/google+ing and anything else you can find that uses hash tags by posting #VATMOSS #VATMESS and talking about how it will effect us all. For now I have done all I can and am hoping for an eleventh hour change of plans, but that will only happen with your help.