EU VAT Mess.

[Janet K.]

I am sorry to be posting about this bad news, but It finally dawned on me that TQS might be affected by the new EU VAT( Value Added Tax) laws that will be in place as of 1st January 2015. They relate to all digital downloads that are sold after this date. As I understand it the seller will be responsible for paying the VAT to each individual state in the EU for each sale made to somebody in the EU. The seller will have to request proof of location of the purchaser and also to hold onto the information for 10 years. These VAT returns will be due quarterly and every country has a different set of rules and rates.

There is further information on this site. Susan Briscoe has more blog posts about this mess, her latest being here

[Susan B.]

Wow, Rosemary, and to all our EU friends, this really stinks. I'm curious to know how in the world anyone would ever know you downloaded something from a US site? The monitoring of this looks just like a horrific boondoggle. I can't even imagine a US, or other country outside the EU, agreeing to this. Keep us posted. It's an interesting twist in the global economy.

[Rita C.]

This wide net is going to kill a lot of very small fish! It is appalling. I know in this country VAT is the biggest pain in the backside and once you are in the VAT net it is impossible to get out of. I think this has happened because the bigger companies like Google, Amazon and Apple have been finding ways of avoiding paying taxes through loopholes in the EU system. And ironic that they allowed the entire world to download music illegally to the point that there is no longer a recording industry worth bothering with and they did nothing about it. A lovely Christmas gift for all of us.

[Rita C.]

What is does mean is that a lot of the indi pattern makers will no longer sell to anyone in the EU. The EU beaurocrats (stuff it I cannot remember how to spell the flipping word - stuffed shirts in government) say, 'well it was decided in 2008, so why don't you know about it' HMRC say they informed everyone who was VAT registered so it is not their fault. I have only been aware of it since November when I started seeing posts by Susan Briscoe and a few others on fb about it. As for how will anyone know - I believe there are programmes devised to trawl and look for these sorts of transactions and then to give the sellers a kicking. Would you risk 100% of your business for 1% of your sales?

And yes, it I because Google, Amazon, & Apple etc, set up their European offices in Luxembourg where the VAT is/was very low compared to other countries in the EU block and managed to avoid billions on VAT taxes in countries like UK.

[wendy w.]

TQS is outside the EU so won't be taxed maybe

[wendy w.]

A blog post from USA about it http://springtreeroad.typepad.com/sp...the-world.html

[Lois B.]

Bonnie Hunter wrote about this problem on her blog yesterday. Sounds like Rita is right about small fish getting caught up in this big net. Here's the link. You have to read though a bunch of stuff about a Sunday walk with her dog but she does get to the topic.
http://quiltville.blogspot.com/2014/12/sunny-december-sundays.html
Hadn't thought about how this will effect TQS. How will it effect EU members trying to download the BOM etc. What a mess! It has been amazing what we have been able to do in terms of exchanging information at very little cost. Maybe it's been to good to be true.

[Lorna B.]

How would it affect TQS? We don't buy and download things from their site. Well, the projects and the BOM. But those are "free" in our membership, so maybe it won't really affect TQS much. Except when it comes to purchasing kits and video sets. I guess that will possibly be affected. But really companies will just need to add the VAT to the price of the product when they sell it.

I think I saw on here where some UK folks were complaining about how the Superior thread discount wasn't worth it due to high shipping prices. PM me if you want to use my address. You'll then have to pay for shipping to you from here in Suffolk. But I am game if you are. Offer only good until May as I have put in my retirement papers and its been approved! I'll be leaving in June or July.

[Hannelore N.]

Lorna, retirement is great!!
I wonder if small business owners can get around it by offering a membership that includes free downloads??

[wendy w.]

Congratulations Lorna, join the club.

Will you be seeing the sights of Nottingham or Derbyshire before you go?

[John A.]

We have become aware of the Tax. I don't want to say too much in a public forum and we are still researching. However, for now we believe we can be considered exempt as an educational deliverer with live people able to tutor by answering questions in the community, comments and forum.

[Lorna B.]

Wendy, Those are parts of England we haven't been to. Hoping to make it before we leave.

[Rita C.]

Delighted to hear it John. Those of us on this side of the Atlantic would be lost without TQS.

[wendy w.]

Wendy, Those are parts of England we haven't been to. Hoping to make it before we leave.

Well perhaps Lorchen and I can meet up with you

Sorry off topic as usual

[wendy w.]

Hi Lorna
Tried to 'friend' you but nothing happened. Also looked on your profile to see here you were but agin nothing. Am here in uk are you?