(PLEASE NOTE – IF YOU LIVE OUTSIDE THE EU OR IN THE UK THEN THIS POST HAS NO RELEVANCE TO YOU!)
On 1st January 2015 a new regulation comes into force within the EU. From 1st Jan, VAT is now payable on the sale of digital goods within the EU. If that was all, then it wouldn’t be a major issue.
However, that VAT is now deemed to be payable in the country of the buyer, not the seller.
Theoretically this means that if I sell any of my courses or products in any one of the other EU countries that’s not the UK, I would have to register for VAT in that country and file quarterly VAT returns in that country. Additionally to fully comply with the new EU Regulations I would have to collect two different pieces of information about each sale that proves where the sale originated (e.g. buyer’s address, their IP address, the address of their bank, etc etc) AND HOLD THAT DATA FOR 10 YEARS.
How This Affects Me (And Indirectly….You)
Because I’m literally a one man band the requirements of these new regulations are too time consuming for me to comply with and make sure that I’m meeting the legal requirements of these new regulations.
Therefore – after thinking long and hard about this, and long meetings with my accountant – I’ve taken the decision that from 1st January 2015 I will no longer sell any of my educational material to students within the EU for the forseeable future.
Courses affected will include (but not be limited to):
- First Bass And Beyond
- Bass For Beginners
- Working Basslines
- Blues Bass
- Walking Basslines
- Basslines 101
- Fingerstyle Funk Rock Bass
- Cracking The Detroit Code
- Working Basslines – Funk, Soul And Disco Volume
Currently I also sell a bunch of PDFS – song transcriptions and the like – and these will also be removed from sale.
ANY SALES MADE FROM THE EU AFTER JAN 1st WILL BE REFUNDED AS SOON AS I SEE THEM AND NO PRODUCTS WILL BE DELIVERED
How Long Will This Last?
I’m deeply disappointed with this new legislation – it’s poorly thought out and inconsistent. (For example, the requirement to keep two pieces of data about each sale contradicts the EU’s Privacy Laws and I would probably have to register to be a data controller to legally be able to keep that information on file).
Hopefully in 2015 the legislation – or the interpretation of the legislation – will change sufficiently to allow me to recommence selling to the rest of the EU. But only time will tell. Obviously if the situation changes then I will post about that.
Please feel free to ask questions about this by leaving a comment below.