Wednesday, December 31, 2014

Pattern Sales for EU customers

If you are reading this you are probably already aware of new EU legislation regarding the collection of VAT for digital goods. The rules, as I understand them, require a seller to confirm the country of residence of the buyer (in 2 ways) and collect the appropriate VAT based on the buyers country, not the sellers. The seller would then be responsible for submitting the collected VAT to the appropriate agency (there are 28!) on a quarterly basis. Fine if you are  large multi-national corporation, but devastating to micro and small businesses. The fees involved with becoming VAT registered alone are enough to cause a micro-business to close up shop.

So what do we do? In my research it would appear that there is an exemption for digital goods delivered manually, in a person to person business exchange. For example, if you were to enter into a transaction in which you personally emailed the seller, who then personally responded with payment instructions, and then manually sent you your digital files. No part of the transaction is completed by automated programs. It means more time invested on both sides, but I make myself available via email for pattern questions already so I am willing to do this for my EU customers.

Here is how pattern sales will work for customers in the EU ONLY. You will need to contact me via  or via email (if you already have it from a previous pattern purchase) with a message containing your name, paypal address, email address for pdf delivery, and the pattern or patterns you wish to purchase. I will then manually send you a paypal invoice for the pattern(s) you have chosen. Once payment is received I will personally email you your pdf files.

I apologize to all of you for not being able to handle this in a more streamlined and efficient way but until further notice this is how we will operate. If it is determined that this is unacceptable, or restrictions are placed on this legislation to exempt micro and small businesses, I will make a new post with new instructions.

All the best,
Melrose Knits