First, let me distract you with a knitting photo…so this post doesn’t put you to sleep.
This is not a fun post to write, so let’s get through it quickly, shall we?
Some of you may know that the EU is changing how VAT tax is collected on electronically sold items starting January 1st. Instead of being determined by the residency of the seller, the new requirement bases the VAT on the residency of the *buyer*. Meaning that a U.S. based designer, selling pdf patterns on ravelry, suddenly has to worry about paying international taxes. When I first heard of this I assumed that it wouldn’t affect me, but upon checking I learned that I have sold patterns to knitters and crocheters in a number of EU countries.
Global market, indeed.
There are more difficulties in this legislation than just keeping track of how many patterns I sell in each EU country and remitting tiny payments to those countries each quarter, but I won’t bore you with the details. A quick google search on EU VAT MOSS should satisfy the curious.
Thankfully Ravelry was able to come up with a workable solution for those of us who didn’t want to stop selling to crafters in the EU. Beginning January 1st, Ravelry users in the EU will be directed to my patterns on Loveknitting.com for purchase. LK is set up to deal with the VAT charges so that I won’t have to. I am also in the process of uploading my patterns to Patternfish.com as an additional option for EU buyers. If all goes well, they should all be there by mid-January.
This change means that knitters and crocheters in the EU will be paying more for my patterns beginning January 1st (my prices are VAT exclusive), so if there is a pattern of mine in your queue, I would suggest purchasing it before midnight on Wednesday.
I also wanted to note that a few of my patterns will be seeing price increases on January 1st as well. I went through the exercise a few weeks ago of comparing my prices to those of similar patterns on Ravelry, and discovered that several of them were underpriced for the market. I will be taking the opportunity to make this correction on Thursday. Yet another reason to purchase any patterns in your queue sooner rather than later.