Important notice: PDF Patterns after #EUVAT

I have given a tremendous amount of thought to how I can keep my business running without breaking the law once this EU VAT nightmare kicks in. I can't stop selling PDF patterns as some others are doing because the patterns form such a large part of how I make my living, and I can't sell through another platform because my margins are already too tight, but I am equally unable to comply with the ridiculous new legislation when I work on such a small scale. Therefore I have hit upon a compromise which will, I hope, cause the least disruption for the most people. It is worth noting for the record, however, that I am not at all happy about it, because it will make things more difficult for me and for a fair few of you too. I'm really sorry about that. I am hoping that eventually the EU will adapt the legislation to protect the smallest sellers like me, and our buyers in the EU, but at least for the short term this is how I need to do things:

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From 1st January 2015 anybody based in any EU member state other than the UK will not be able to use my automatic delivery system when ordering PDF patterns. My EU customers will still be able to buy any of my PDF patterns, but I will need to deliver them manually (either as an attachment in an email or by using a file transfer system, depending on the number and size of the patterns you order). The exact set-up has still to be confirmed, but it will likely include EU-specific pattern listings in my shop; the regular ones will only allow you to checkout if you are outside of the EU. This obviously means that for those of you in the EU, delivery times will be significantly slower as I will essentially need to treat PDF patterns just like physical products, with delivery times being up to 2 working days (though often sooner if I am free), and delivery will not be available when I am away or on holiday or if the shop is closed for any other reason.

This change is necessary because, stupidly, the new rules cover any patterns delivered to customers in the EU by an automatic system, but not patterns delivered manually by me personally. Even though the products are identical. Ridiculous? I know. The rules were made by an ignorant bunch of buffoons who appear never to have bought anything online, especially from an independent seller.

For my customers in the UK and in any other non-EU country, business will continue as usual, with PDF patterns being delivered immediately after checkout by my automatic delivery system.

Orders for any physical products (books, kits, etc.) are not affected, so you can continue to order those from anywhere (including the EU) as usual.

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I am truly sorry to make things slower and clunkier for my EU customers, especially when some of you have been my biggest supporters right from the start. It makes me angry every time I think about it because the EU is meant to encourage free trade, but this legislation has ended up doing completely the opposite.

This temporary measure will only work for as long as the new rules apply solely to digital products (or until I can't keep up with sending all of my EU orders out individually any more). Once the Government spreads the net to include physical products too, which they are planning to do as soon as 2016, then we are all stuffed.

If you are unhappy about these changes (as I am... can you tell?), then please help us to try and overturn the decision. There is a petition that you can sign, a Twitterstorm planned for tomorrow (Tuesday 16th December 2014) and any letters that you can write to your local MPs and MEPs will be a huge help. All of the information you need can be found through the links below. We especially need people in other EU member states besides the UK to kick up a fuss, because currently it is pretty much just us in the UK fighting against the ruling, and on our own we have no hope of overturning it. Therefore may I offer a heartfelt plea to any of my lovely EU customers who will be affected by this: please, please get involved and help us to protect this amazing circle of independent makers and buyers who could be flattened by this legislation.

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Links:

#EUVAT Petition: https://www.change.org/p/pierre-moscovici-a-unilateral-suspension-of-the-introduction-of-the-new-eu-vat-laws-for-micro-businesses-and-sole-traders

#EUVAT Twitterstorm Essential Info: http://euvataction.org/2014/12/14/twitterstorm-essential-info/

EU VAT Action Website: http://euvataction.org/

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Thank you so much for your patience in putting up with all of this nonsense. I hope very soon to return to spending my time creating spangly new things for you instead of getting tangled up in red tape!

If I don't make it back here beforehand, I wish you all the most wonderful Christmas and look forward to enjoying a spectacular 2015 with you!

Delilah x

Comments

[Claire]

I've had to stop selling mine all together - it's too little return for me for the effort. I hope this mess gets sorted out before it applies to physical products - so many people will just be driven out of business. What a total cock-up! GAHHHH!

[What Delilah Did]

So sorry to hear that you are another who has been forced to stop selling her patterns Claire - I feel your pain! Monumental cock-up indeed.

[Maddie]

Too many people are stopping selling their pdfs. As you say this will affect all business soon, not just pdf type things. I wonder however, if you will still have to show proof of where your buyers are from? In order to show hmrc that none of them ARE from the EU. This is what worries me. They may not take your word for it. It's a major headache and pretty implausible as things stand for the small business to deal with it all. It will stop sales in any case because they will be 20% more expensive if buying from outside the UK. They certainly will put me off as well as others. I was gearing up to put patterns on the market. Now I am not, and just waiting to see what happens. I sell physical handmade goods, but goodness knows what the future holds there. Just today I have seen 6 businesses that have withdrawn their patterns from sales. It's a tragedy actually, for buyers and sellers alike.

[Delilah]

It really is a tragedy Maddie, not least because most people have no interest in the issue until it directly affects them, so won't kick up a fuss until the law comes in for physical products, by which time it will be too late because the precedent will already be set.

HMRC have said that people shouldn't actively have to prove that they are NOT trading with the EU, so the fact that I have set up systems to separate that part of the business should suffice. I hope it will only be a temporary measure anyway. Spending the whole of New Year's Day shut in a room making my website less efficient and more difficult for my customers to buy from filled me with fury!

Sorry to hear you have had to change your plans too. Hopefully now that Christmas is out of the way people will be more prepared to listen. We just need to keep the pressure up.