The 1st of January brings probably one of the biggest changes to sales tax in recent years and one that impacts world wide. 2015 sees the introduction of new VAT MOSS system that means VAT must be charged to EU customers based on the country in which they reside. There is no minimum threshold for this new taxation so basically anyone who sells to the EU regardless of their location or turnover must account for this new VAT. Please note this post is our interpretation of the rules and are not definitive, we are still seeking advice going forward.
This week FlixelPix was faced with the decision to either suspend sales to EU countries or find a different way of selling the eBooks. After much deliberation we have opted to retain EU sales and track sales for the new tax.
What this means to FlixelPix eBooks
Well, at this point we are currently ready for this new VAT accounting system. The price of the ebooks is now quoted in UK pounds rather than $.
What about Sales to EU
The system is capable to calculating the VAT according to the country in which the customer is resident. At the minute we are going to cover the cost of the VAT charge so that EU customers will pay the same amount as customers from other countries and the % will come out of the amount paid to us. We may look at this in future but until the VAT MOSS systems settles we thought this was the best way forward. Note as we reside in the UK we don’t have to charge any VAT to our UK customers, it’s a complicated system!
What does VAT MOSS Mean to you
The new system appears to have crept up on sellers, especially those not currently having to charge VAT on their products and services. If you sell digital content then you really need to look at VAT MOSS now to ensure your e-commerce system is compliant.
What about Happy New Year?
You are right, it is New Year and we should be celebrating rather than stressing out about new VAT systems coming into play. So to make up for the new VAT MOSS introduction here is a chance of getting both FlixelPix ebooks for a ridiculously low price and better still if you buy before midnight on 31st December we won’t have to pay any extra VAT.
Forgive the lead photo, not surprisingly I didn’t have any VAT related imagery but I did get a hit on ‘moss’. eBook discount ends 30th January 2015.
As the rules on VAT MOSS become clearer or if other payment providers introduce support for the new tax then we will endeavour to update this post. To the best of our knowledge this is the best we can currently offer.