I wrote in an earlier post how EU VAT is affecting sellers of digital products, no matter how small the business is. To recap, any business, regardless of its size, is now obliged to charge EU VAT to customers that live within the European Union.
In January, Etsy announced they would put systems in place to deal with this tax. Last week the system was introduced and so if you live in an EU country, you will see that my prices have increased. The price that you see will have increased by the EU VAT rate in your country. For the UK, this is 20%.
The price is calculated and added automatically and Etsy will take care of the tax. Unfortunately, because I'm not selling directly to customers in the UK, the tax still applies to sales to UK customers.
This is completely beyond my control and Etsy are only doing what the law requires them to do.
If you buy from my Payhip shop, EU VAT is added at the checkout.
There is a strong campaign to get the EU to introduce a reasonable threshold that will mean small businesses no longer have to charge this tax. If you would like to know more about how EU VAT will affect you as a business owner or customer click the link below.