Posted by: DrAlanRae | December 12, 2014

#VATMOSS – what’s that when its at home?

One change for the New Year in the way we do business that has emerged in the last few weeks is the way that VAT is handled on inter EU sales of electronic products such as e-books.

In an attempt to do something about the likes of Amazon holing up in Luxembourg where the VAT rate is 3% the EU in its infinite wisdom has decreed that from the 1st of January instead of VAT being due in the Seller’s country it’s now due in the Purchasers. Anyone selling anything electronic after the 1st January will either have to register in all 29 jurisdictions, use the HMRC Mini One Stop Shop (hence #VATMOSS) put it through a player like Amazon or iTunes and pay the necessary fees to them or stop trading into Europe altogether.

This is particularly bad news for the substantial number of 1 man bands selling logos, e-books and knitting patterns particularly as in its original interpretation the sale of 1 e-book to Belgium would result in a 1 man band under the VAT threshold having to register for VAT for all UK sales as well. Many of them have been threatening to down tools and shut up shop rather than comply and a storm of protest under the hashtag #VATMOSS #VATMESS has been going on twitter and Facebook.

All this at the time when the EU Commissioner in charge of all things digital– a Mr Andrus Ansip – has just given a speech banging on about how he wants to remove all the barriers to digital trade within the EU. Shame he has such a great example of the law of unintended consequences on his hands.

But despite the rather dismissive attitude of the Business Secretary (which has done him no favours with the small business community) I have been rather pleasantly surprised by HMRC’s response. They have not only ruled that non VAT registered companies can stay non-registered for UK sales but have also come up with some very clear guidance as to what’s in and what’s not. The current regime is aimed at electronic sales and is outline here in this screen grab from the HMRC guidance.

VAT rules for digital sales

VAT rules for digital sales

It’s true that it’s absurd that an e-book attached to an email as a PDF doesn’t count but one accessed via a link in an email does but that’s not the fault of HMRC who have done their best with the limited wriggle room they enjoy.

Apparently HMRC raised the issues of sub vat threshold companies in 2008 when this was first enacted (you would think we would have heard more about such a radical change wouldn’t you?) but apparently no-one in Europe cared a fig.

This is of course a dry run for (probably) next January when this dismal process will be applied to ABSOLUTELY EVERYTHING but at least by then there will be software plug-ins readily available and proven to collect the 2 separate pieces of evidence that are required to establish the jurisdiction of the purchaser.

Of course the guidance doesn’t yet cover the case of a Hungarian national who uses his I-pad to buy an e-book from you while he’s in Spain on a train that started its journey from Paris but that’s a problem for another day.

What to do?

I’m going to attach PDFs to emails for e-books and bundle some live webinar support into the online video courses I have. Then I’ll evaluate which solutions look effective over the next year and get back into the 21st century some time next year once a proven platform emerges.

How about you?

If you need any more info on this you can contact me, Alan Rae on 07958 200112

See on Scoop.itCommunication in Business

Google has pulled the SEO ranking of Interflora for its own brand name as well as generic related topics such as ‘flowers’, ‘flower…

AlanRae‘s insight:

Blimey – is nothing sacred. Google punish interflora for their core business activities

See on www.thedrum.com

See on Scoop.itHow to do Business

AlanRae‘s insight:

This man seems to have been around a lot and learned quite a bit. Highly recommended

See on therumpus.net

Posted by: DrAlanRae | January 24, 2013

Everything you need to know about Google + Communities


It really has been a long time coming for Google to launch their Google + “Communities”. It’s hard to believe that it took them more than a year to come u …

AlanRae‘s insight:

Interesting post on the basics of Google + communities from my friend Lilach Bullock

See on www.socialable.co.uk


The Rise and Rise of Google+ 2011 to 2018

Having built and sold a social network, 1998-2011, I understand with deep insight and painful practical…

AlanRae‘s insight:

Well here’s an interesting think piece from someone who’s been mulling this over for ages. Well worth a read IMHO.

See on plus.google.com

Posted by: DrAlanRae | January 23, 2013

Plus-One This: Proof That Google Plus Will Prevail


Remember when Google Plus “flopped”? Well, it didn’t.

AlanRae‘s insight:

c

See on www.fastcompany.com

Interesting article about Google Plus and why we should be taking note of it.

Basically it says you would be well advised to use the Google Plus profile to link to your blog, Crewate a local business page and learn how to search relevant communities.

Posted by: DrAlanRae | January 21, 2013

Are science and business incompatible? – NFU Online

NFU blog post about how the commercial drives of the GM industry result in decisions being made that are scientifically stupid and actually quite dangerous

AlanRae‘s insight:

This article is basically about the rise of super-weeds thanks to the particularly crude approach that Monsanto have taken to commercialising GM crops.

See on www.nfuonline.com

Posted by: DrAlanRae | December 31, 2012

13 Things Digital Marketers Should Master In #2013

See on Scoop.itCommunication in Business

Last year I created a post about 12 Platforms That We Should Use in 2012 and my goodness what a difference a year makes.  So much has happened in the world of Digital Marketing in 2012, all pretty …

AlanRae‘s insight:

Useful digital marketing review article via my friend Marieke @Hensel

See on anisesmithmarketing.com

Posted by: DrAlanRae | December 28, 2012

Return to relentless customer focus in 2013?

See on Scoop.itCommunication in Business

AlanRae‘s insight:

We seem to have a litany of customer focus posts this morning – no doubt due to everyone’s dismal Xmas present experiences ;)   Here’s some food for thought from my old chum Anne Marie McEwan

 

See on www.thesmartworkcompany.com

Posted by: DrAlanRae | December 28, 2012

Why are companies grappling with basic customer service?

See on Scoop.itCommunication in Business

Adam Bender from Computerworld Australia recently reported on an event hosted by IPscape exploring the challenges companies continue to have delivering customer service that meets expectations. Wit…

AlanRae‘s insight:

Interesting article given ongoing struggle to get parcel delivered by #moltonbrown via #yodel since 19trh December

See on blog.marketculture.com

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