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The VAT rule is on the EU though. It was implemented without much thought about collateral damage. They even forgot to have a minimum threshold for it, which re
by Aerroon 6y ago
The VAT rule is on the EU though. It was implemented without much thought about collateral damage. They even forgot to have a minimum threshold for it, which resulted in some online micro businesses shutting down. It took years for them to implement a minimum threshold. As the rules were initially, it encouraged very small digital businesses not to sell to other EU countries. Think about that.
You are in the UK. You create knitting patterns that you sell online. Somebody from Latvia wants to purchase your knitting pattern. However, you don't have any other customers from Latvia. You're better off not selling to that customer to avoid the paperwork for VAT to Latvia. This is a digital product that can be copied at nearly no cost.
Politicians saw the light at some point and implemented a minimum threshold for VAT for these kinds of payments. I still cannot understand why this took years.
From 2015: https://euobserver.com/opinion/129961 https://euobserver.com/opinion/129961
Sorry, but I'm still salty about it.