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Doug Nebeker ("Doug")
If you are selling digital products to consumers in Europe you should read this:
Hopefully between us we can sort out the various nasty implications.
You can also upvote the post on HN:
Monday, October 13, 2014
Typical of the EU, dreaming up more and more ludicrously complicated rules. Starting to think that UKIP are right and we should just abandon the EU altogether. Getting harder and harder to justify our membership costs (money and hassle), compared to the meagre "benefits".
I saw this in the recent HMRC VAT notes. Keeping track of the customer's country and VAT number is going to be a real pain for electronic downloads.
Monday, October 13, 2014
We sell software that is downloaded over the Internet, but it's installed at the customer's premises and doesn't use the Internet for any part of it's operation.
I'm hoping this isn't classed as a 'digital service' as we are not VAT registered and I'd like to keep it that way! The changes we'd have to make to comply with this are going to be a nightmare.
The example of 'anti-virus' software on the UK .gov site gives me hope. But then I saw one of the EU annex documents which says something along the lines of 'all software and updates'.
The UK VAT helpline is useless. You get an annoying voice menu where nothing works, then you get a message saying they are busy and it disconnects you.
Can anyone offer any advice here?
There is a document online which explains, but I don't have the link to hand.
As I understand it, if there is no 1:1 human service (e.g. consulting or training) involved in the sale, it counts as digital goods. Not sure what happens if you also ship them a CD.
>As we are B2B only, we will not be affected.
How are you going to stop consumers buying your software?
Thursday, October 16, 2014
> How are you going to stop consumers buying your software?
The nature of our software sort of does that for us :)
In 10+ years of trading I could count on one hand how often consumers have even asked about buying our software. In all cases we've advised them our software is too 'heavy' for their needs and pointed them towards open source alternatives.
And have the government make you a test case?
Friday, October 17, 2014
This is terrible. But I think payment processors already cover this currently. I'll just have to dump my PayPal registration option and only keep FastSpring. They already collect and pay vat after my EU sales. (even though I'm below the VAT registration limit in my country)
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