This Whole VAT Thing

The deal: Beginning today, the EU has decided that all digital sales (pattern PDFs, printables, whatever) are going to be subject to VAT, based on the consumer’s country. The VAT rates are insane, yo, the average tax is 21%.

As I actively avoid the garbage Etsy’s admins post, I found out in an email yesterday. (Ravelry likewise sent me an email.) There is this post in the Etsy forums, and once again it’s the comments that really have the most information. Etsy’s stance basically seems to be, “YOU’RE ON YOUR OWN, GO ASK YOUR ACCOUNTANT.” I don’t have an accountant. A lot of indie sellers probably ALSO don’t have accountants, because we are SMALL businesses. The comments, however, (and the helpful post from Ravelry- more on that in a bit) indicate that it is actually Etsy’s responsibility to deal with this. They’re dropping the ball, and promising “a tool” “soon.”

So. I am not worrying about it- on Etsy. They’re responsible, they’re shirking their responsibility, and they get to deal with the fallout, not me. Screw you, Etsy. What I will probably end up doing is letting all of my listings expire because I’ve already paid for them, and then bailing on Etsy. I can’t even with their crap anymore.

Ravelry, however, had this to say. Have I mentioned lately how much I love Ravelry? They already have a solution. I will be doing as they recommend and moving all of my listings to Love Knitting for EU sales, which will be free for the next 6 months. As it stands, chances are fairly good that I’ll be replacing Etsy with Love Knitting as my other venue.

Happy New Year, y’all!

One response to “This Whole VAT Thing

  1. Ditto… I am just waiting for my patterns to be ‘approved’ by Love Knitting…will keep Etsy in the hope that they get so much stick that they at least provide an option to sell to own country (UK for me) and non European Countries…can then direct EU buyers to LK in my policies … good luck with whatever you choose to do.. 🙂

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