On January 1st some big changes to the EU rules for paying VAT are taking place. I’m not going to attempt to explain it all here, but this article is quite a good summary: New EU VAT Regs Seriously Threaten Small Businesses. In short, anyone selling digital products on a website (cartoons, ebooks, apps, knitting patterns, art, WordPress themes, programmes, etc etc), will, if they sell one single item to anyone outside the UK but in the EU, have to be registered for VAT.
The cartoon is my attempt to demonstrate the different options I and others have. As I said at the end of the cartoon: it is a simplification and shouldn’t be taken as being correct. Whatever you do, don’t base any real-life decisions on it.
I don’t know what will happen to some of my online projects. CartoonChurch.com will be affected by these new regulations, and at the moment I really don’t know which of the six options above I will have to choose. I also had various other plans in progress to develop my online work, and these are now currently all on hold.
In the meantime I’m doing all I can to campaign for a change to these new rules. You can do so too – a good place to start is by signing this petition: Uphold the VAT Exemption Threshold for businesses supplying digital products. If you want to know more I have found the #VATMOSS hashtag on Twitter and this Facebook group helpful. (Update: there is a new petition: Petitioning Commissioner for Economic and Financial Affairs, Taxation and Customs PIERRE MOSCOVICI ‘A unilateral suspension of the introduction of the new EU VAT laws for micro businesses and sole traders‘)
As for the cartoon – please do share it, though I’d ask you to please credit it to me and keep the link to this page. Thank you! I’d prefer that you don’t use this cartoon to advertise your own services. (If in doubt, or you want to publish this cartoon elsewhere, please contact me.)
Finally, welcome, if you’ve not seen my work before. For more cartoons see the links at the top of the page, or follow me on Twitter: @davewalker.