Euro zone consumers will be hit by new tax rules in 2015

EU map with starsThe following announcement does not affect Stitching Cards customers in the UK and outside the European Union (EU).

Consumers in France, Germany, Holland, Ireland and other Euro zone countries may not be able to purchase patterns as digital downloads from small British based websites such as Stitching Cards when new EU tax regulations come in to force on 1 January 2015.

The new EU regulations require all businesses to charge VAT at the correct rate for each of the 29 countries in the EU. There will be no lower threshold for EU cross border sales of digital downloads so even the smallest traders will be required to charge VAT.

Initial reports suggest the new regulations will be time-consuming and relatively costly to implement. It is likely that many small businesses will stop trading with the rest of the EU, particularly those with a small number of cross-border sales. Those that do continue are likely to increase prices to add VAT.

UPDATE

Stitching Cards have decided to outsource the payment and delivery of Euro zone sales to a third-party platform. They will handle tax collection, compliance and payment. Visitors from Euro zone countries will be directed there to make their purchases.

Post updated 22 December 2014.

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