Do you sell digital products? If you missed this before Christmas…

Editing_and_Proofreading Blog_364I don’t normally repeat posts, but if you are an indie publisher in the UK, it is important for you to know about this change. I published this post on 17th December, when I noticed the problem, but I’m betting some of you were rushing around getting ready for Christmas then.

In an attempt to stop organisations like Amazon putting their transactions through countries with low VAT rates, the tax regulations about digital products are changing.

From 1st January 2015, if you sell a digital product, it counts as a sale not in your home country, but the country where the customer lives.

That may not sound like much of a change, but:

  • Before the change, if you are a UK trader with an annual turnover below the £82,000 VAT registration limit, you did not have to charge VAT on anything.
  • After the change, if you sell a digital product like an eBook to someone in another European country, you have to follow the VAT regulations in their country and pay the tax if it is due to that government.

Not nice, eh?

If you are selling through another organisation (like Amazon), then you don’t need to worry. This is their problem.

If you are selling through your own website, for example, you need to re-organise yourself, or consider changing your selling plans. Try these articles:

I’m off to investigate what Etsy are planning to do on this one.

Visit my websites via the links at the top of this page.


About The Proof Angel

I am a freelance editor and proofreader, working with a wide range of clients from large companies to individuals. I can help you to communicate clearly by carrying out a final check, or by suggesting ideas get your message over. I also have a sideline in textiles, as The Rainbow Angel.
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