EU Being Stupid?

[spring hall convert]

For those on twitter - #vatmess.

 

[Deleted member 22389]

I suppose anything to highlight the problem, but will they listen? and once they listen how long will it take to do something about it. The answer will probably be NO

 

[beorhthelm]

Sounds ok to me. A minor change to close a minor tax loopholes.

corrected for you. the change only applies to digital services: Amazon will have to charge UK VAT not Luxemburg VAT when you buy a download edition, but still get away with Luxemburg VAT when they send you a CD. as loopholes go, its not really the companies that benefit directly in the first place, its the consumers seeing a saving because of lower VAT in some countries. the large players of course can setup in lower VAT country and therefore undercut local retailers, which was always the problem here. this change does mean that advantage is removed - for digital services only.

im reminded here of another related daftness of the EU, that digital books attract VAT while their print version dont. partially off topic, but in keeping with the thread title.

 

[beorhthelm]

Whilst I agree with most of what he and you have written I'm struggling to get my head around the additional burden. Chris must already be dealing with and filing accounts and self-assessment for overseas sales so I don't understand why this is causing folk to be overwhelmed? It is extra admin, I agree, ...

if you agree, then what are you struggling with. you are forgetting that in UK we dont have to be VAT registered under a certain threashold. you are probably also overlooking that most amateur/semi-pro bands are *not* going through self assessement and declaring their earnings. the unsaid rule here is that if you dont claim benefits and especially if you are on PAYE with the day job, the revenue wont bother you. now they have to go an get VAT registered, even if they are using Bandcamp to provide the paper work. bands *will* go offline as they dont want the hassle of a bunch of paperwork, however simple it may seem to people running businesses.

 

[Nibble]

The EU have advanced the state of the world immeasurably and there's no going back now. Just a shame it costs us all so much.
This new directive will close fat cats tax holes at a small inconvenience to the "bongos and a dream" brigade. Crack on I say, crack on.

 

[Herr Tubthumper]

if you agree, then what are you struggling with. you are forgetting that in UK we dont have to be VAT registered under a certain threashold. you are probably also overlooking that most amateur/semi-pro bands are *not* going through self assessement and declaring their earnings. the unsaid rule here is that if you dont claim benefits and especially if you are on PAYE with the day job, the revenue wont bother you. now they have to go an get VAT registered, even if they are using Bandcamp to provide the paper work. bands *will* go offline as they dont want the hassle of a bunch of paperwork, however simple it may seem to people running businesses.

You seem to be suggesting this will be a paperwork burden for people who are not declaring their income? You're not making any sense here.

 

[Herr Tubthumper]

http://blog.bandcamp.com/2014/12/30/eu-digital-vat-changes-and-bandcamp/

Seems like the issue is resolved.

 

[Herr Tubthumper]

Lovely thank you. I went through immigration checks at Newhaven on the way out, at Dieppe on arrival and exactly the same again on the way back. No big deal and little delay so the argument of us leaving the EU making life difficult because of border checks is utter rubbish as they are already there run by both the UK and France.

I was genuinely asking after you...and you twist it into an anti-EU post. Merry Xmas

 

[Westdene Seagull]

I was genuinely asking after you...and you twist it into an anti-EU post. Merry Xmas

OK, fair point. Yes it was fantastic and can't wait for the next time I go. Had the best steak ever in a little place you wouldn't even know was there if you didn't speak to the locals. Viva la France !

 

[beorhthelm]

You seem to be suggesting this will be a paperwork burden for people who are not declaring their income? You're not making any sense here.

yes, fair point, i think what im trying to say is that those not declaring on the side income are not going to like the news they need to be VAT registered. people are being scared/worried off selling online because they'd rather not register for VAT, overlooking the fact they should probably already be filing for that income. people dont fit in to neat little box of reliable tax payers. i know, this probably wouldnt happen in Germany.

bandcamp's change of position, given their previous advice, is interesting. they seem to be effectivly becoming an accountancy service, or are using a loophole to poke everything through