I haven't seen a thread about this so I thought I'd start one. Also I am interested in how non EU residents are dealing with this new change. Does it affect you? are you excempt? I've done a little research and it doesn't seem that you are, but It seems no one knows what's going on.
Found this for the US: http://www.forbes.com/sites/janetno...ow-about-taxes-on-digital-goods-and-services/
To sum up. Customers selling digital goods/ downloads/membership sites to any country within the EU will now have to charge VAT at the country's rate. And there are no exceptions....if you only sell one a year you will still have to be VAT registered. Also from next year companies selling tangible goods will be liable as well.
So you can no longer charge say 20% you must now charge whatever the rate it is in the customers country...so that's over 20 different rates.
This has caused a mess in the UK because suddenly small businesses that were not liable are now. Also the administration is heavier: you must collect a lot of data on the buyer and keep records for around 10 years.
Am very interested in other's experiences. I've had to close down my side passive income stream as it was no longer viable.
Further reading:
https://www.gov.uk/government/publi...pplying-digital-services-to-private-consumers
Found this for the US: http://www.forbes.com/sites/janetno...ow-about-taxes-on-digital-goods-and-services/
To sum up. Customers selling digital goods/ downloads/membership sites to any country within the EU will now have to charge VAT at the country's rate. And there are no exceptions....if you only sell one a year you will still have to be VAT registered. Also from next year companies selling tangible goods will be liable as well.
So you can no longer charge say 20% you must now charge whatever the rate it is in the customers country...so that's over 20 different rates.
This has caused a mess in the UK because suddenly small businesses that were not liable are now. Also the administration is heavier: you must collect a lot of data on the buyer and keep records for around 10 years.
Am very interested in other's experiences. I've had to close down my side passive income stream as it was no longer viable.
Further reading:
https://www.gov.uk/government/publi...pplying-digital-services-to-private-consumers
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