Wednesday, January 7, 2015

EU VAT and Etsy


Update 2/9/15: Etsy will be taking care of VAT

On the Facebook group Digital VAT 2015, one member posted this response from the HMRC (Her Majesty's Revenue and Customs), kind of like the IRS.

I sell digital items on Etsy and emailed HMRC with this question:
"Assuming Etsy meets the conditions of a marketplace as described above, if they continue to deny responsibility will I be responsible at any point? And also if later on Etsy were to appeal and found not responsible for collecting EU VAT, will I then be responsible for back-dated EU VAT?"
The email I received back is:

"Thank you for your e-mail.
Whilst we regard Etsy as responsible for the VAT on any sales we will pursue the matter with them and not the individual sellers. If our view of their position should change, I would not expect any adjustment to be retrospective and the matter to be clearly communicated to all those affected.
I hope this is helpful
Your sincerely

Desmond Farndell
VAT Supply Team/ Indirect Tax Directorate/HMRC/100 Parliament St/London/SW1A 2BQ"

So for UK buyers, Etsy is responsible in the eyes of the HMRC.  I suspect this will take a while to shake out, but it is great news so far for micro businesses.

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EU VAT and Etsy

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Update 2/9/15: Etsy will be taking care of VAT

On the Facebook group Digital VAT 2015, one member posted this response from the HMRC (Her Majesty's Revenue and Customs), kind of like the IRS.

I sell digital items on Etsy and emailed HMRC with this question:
"Assuming Etsy meets the conditions of a marketplace as described above, if they continue to deny responsibility will I be responsible at any point? And also if later on Etsy were to appeal and found not responsible for collecting EU VAT, will I then be responsible for back-dated EU VAT?"
The email I received back is:

"Thank you for your e-mail.
Whilst we regard Etsy as responsible for the VAT on any sales we will pursue the matter with them and not the individual sellers. If our view of their position should change, I would not expect any adjustment to be retrospective and the matter to be clearly communicated to all those affected.
I hope this is helpful
Your sincerely

Desmond Farndell
VAT Supply Team/ Indirect Tax Directorate/HMRC/100 Parliament St/London/SW1A 2BQ"

So for UK buyers, Etsy is responsible in the eyes of the HMRC.  I suspect this will take a while to shake out, but it is great news so far for micro businesses.

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Post a Comment