Are you a business selling e-books, digital downloads, online training in Europe?
The law changed after 1st Jan 2021. Even if you're not VAT registered it applies! Don't worry, we've got your back. Get a copy of our Recorded Live Webinar on European VAT and your Digital Business webinar, 20% discount, code DIGDIS BUY NOWBuy Live Recording of the webinar, slides, notes and guide:
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Ask yourself these questions:
Are you a business?
Do you sell any digital products?
Have you, or will you sell into Europe from 1st January 2021?
If you’ve answered ‘Yes’ to all these questions, then carry on reading because the law says you have to follow EU VAT law – even if you’re not VAT registered!
What is European VAT law and what’s it got to do with my business?
If your business sells digital products into Europe, then you need to charge VAT to your customer and pay it to the country, they live in. So, if you sell a digital download to a French consumer, then you charge them French VAT, and pay it to the French tax authorities.
If you sell B2B then no VAT is charged, but you will need more than their word for it.
Common reasons to (wrongly) ignore EU VAT law
Sticking your hands over your eyes and going la la la won’t cut it.
Reason #1 – Brexit protects me! The UK won’t be part of Europe from 1st January 2021, so no problem
Wrong. If you want to sell into Europe and avoid breaking the law, then you can’t ignore it.
Reason #2 – I only make a few sales a year, it’s not big numbers
Unfortunately, there’s no minimum threshold. If I sold one digital copy of my book ‘I Hate Numbers’ to a German consumer, European VAT law applies.
Reason #3 – I can ignore it, no big deal
That’s your choice, but it’s the naughty step + if you get caught. Punishment can include:
- Penalties and fines
- Your seller account being shut down
- Investigation by the tax authorities – you’re outnumbered BTW
Reason #4 – I’m already in MOSS
Good news until 31st December 2020. However, from 1st January 2021 the UK MOSS system won’t apply
Ok, you’ve convinced me that I need to do something. What do you suggest?
Buy Live Recording of the webinar, slides, notes and guide
List price £35.99! 20% Discount, enter Digital code DIGDIS, price £28.79!!
Includes:
- How European VAT affects your digital business
- Customer and financial information you must collect
- What is MOSS
- How to register
- Reducing the tedium of record keeping