Sale page :_http://thebizadviser.com/vat-victory/
Think you’re not affected, because you don’t live in Europe? You should sit down. . .
Because there’s Good News and Bad News for the thousands of online business owners and solopreneurs who sell digital products and services online, direct to consumers worldwide.
So first, here’s the (slightly) Good news: The changes on 1 January 2015 mostly apply to what I call the “Amazon Trap.” But read on . . .
How it works now
Digital downloads and services sold to European retail consumers are taxed at different VAT (value added tax) rates of up to 27%. As of now, suppliers in Europe must charge the VAT rate of the country from which the sale is made.
Rodney, who lives in Manchester UK, sells an ebook to Patrick, who lives in Dublin, Ireland. In the UK, the VAT rate is 20% so Rodney adds that to the price which Patrick must pay.
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