Monday, 29 December 2014

#vatmess

Due to the new EU Vat regulations that are coming in to play on 1 January 2015 (if you don’t already know all about the rules and want to learn more go here.), a large number of online businesses have been forced to consider their EU customers and how to keep both customers, and the taxmen in countries far away from us happy, and a lot of businesses have had to close all together. 

Like lots of other small online businesses, Make Modern had a few options to consider:
1. Completely stop selling to customers in the EU;
2. Move to a different sales platform which takes care of sales and taxes for you but takes a large cut of profits; or
3. Use our current sales platform (SendOwl.com) which collects information on our customer’s location and automatically calculates and charges customers the appropriate tax costs, and then we submit a quarterly VAT return…and hope that in the meantime, the VAT taxmen come to their senses and puts a cap on the #vatmess!

Perhaps the first option would have been the simplest option but we were very keen to avoid having to block customers just because of their location. When we began Make Modern we wanted modern quilters everywhere to be able to access our magazine and was one of the main reasons we went digital in the first place!


After carefully considering our options we have decided to try to continue with our current sales platform which will allow us to continue to sell to customers all over the world, including the EU. 

In terms of you, our customers, the only difference you will notice is that you will be asked one additional question which will allow us to calculate and charge the correct amount of tax at checkout. 


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