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Monday, December 29, 2014

VAT and Possible Shop Vacation

Many of you already know about the issues concerning the new VAT laws and how it will effect Etsy sellers and other small businesses that sell digital downloads. If you would like to read more about Etsy's stance on the matter, you can do so by Clicking Here.

I've been reading about this for the past week and have been going back and forth about what to do. I was hoping that Etsy would come through with a solution before January 1, 2015, but that seems unlikely now.

I may decide to put my shop on vacation mode until things get sorted out. A lot of other digital sellers are also planning to go into vacation mode on January 1, so if there are any digital goods you were thinking about purchasing, now might be the time to do it.

I hardly have anything in my Etsy shop, but I was really looking forward to designing and adding new patterns in 2015. Let's hope that this all gets resolved and that small digital sellers can resume business without breaking the law.

12 comments:

  1. Dear Robin, wait and see, seems to be the only option you have. I have been paying VAT all my life, so ,I think it is only logic that Etsy will have to sort it out.
    I am, however, waiting eagerly for your new designs!

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    1. Yes, I am waiting to see if Etsy will do something to help out with this issue. I have no problems with the VAT itself, if only there was a way to easily calculate and pay it. From what I have read, it looks like there are platforms other than Etsy who will be handling VAT, so they could be a viable option.

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  2. You and I are in the same boat, I have withdrawn my patterns from esty, they have known about this since last July although it's been on the cards for about three or four years, so they have no excuse for leaving it until now.
    Margaret

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    1. It is a shame that there are so many who will be taking digital downloads down. I was annoyed to read Etsy's reaction, because like you said, they have known about it long enough to create some options rather than putting all the responsibility on the individual sellers.

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  3. You could temporarily not do international sales until this is sorted out. I have heard of others who might go with this option at the moment.

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    1. If Etsy implements the ability to do this, I will go this route. Maybe combine this with a direct buy button on my blog for European buyers, using one of the other platforms that will support VAT.

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  4. Well, I went and purchased both patterns...have been putting it off until I had "time" to tat them...but they are high on my want to tat list, so there you go. I absolutely love and want to work your patterns, hoping for a quick resolution to the VAT problem and more designs of yours to purchase! The suggestion to at least do non international sales until some kind of fix happens might be a good one temporarily :-)

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    1. Thank you Julie, and I hope that you enjoy the patterns. I will have to wait and see if Etsy lets us choose the countries we sell digital downloads to. So far I don't think this option exists, but if they do implement it, it will serve as a temporary band aid.

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  5. Can you restrict countries? Maybe just don't sell to anyone in EU i.e. still sell to buyers in US, Canada, Australia etc :).

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    1. I don't think that option is currently in place, though Etsy did mention that they would look into the feasibility of it. We should all know more sometime in January.

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  6. Is another option to sell the pattern and then send the pattern via email?

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    1. That is a possibility, and I have read of sellers who are planning to go that route.

      However, I read two documents today that clearly state that Etsy is responsible for collecting the VAT. So now I am leaning towards keeping my Instant Downloads up and running. That is unless/until things change and I am forced to look at other options. Will post more about it tomorrow.

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