Digital Downloads & EU VAT Legislation

This is all heed nipping boring stuff and is just making people who run a micro business which sells digital downloads question weather it's worth all the hassle to continue selling digital downloads! I am now questioning if I should or should not add my downloads to my website when I get my new online shop up and running.

On 1st January 2015 a new EU legislation came into force which affects businesses that sell digital services, such as e-books, online courses, apps, or downloads to other EU countries. VAT is now charged in the country where the products are bought, as opposed to where the seller is located.

Now I thought this is ok it won't apply to me because my revenue is very very very much below £81,000 which is the UK threshold for VAT. Unfortunately for digital goods there is no threshold, I have to collect VAT from the first £1 and every EU country has its own VAT rates ranging from 8% to 27%.

Complicated? Yeah!

I'll try and simplify this

I have a digital download in my shop priced at £1 a customer living in Switzerland would have to pay £1.08 (Swiss VAT 8%) for this.
The same £1 item is purchased by a customer living in Hungary, who would have to pay £1.27 (Hungary VAT 27%).
I would have to register for the VAT MOSS online service so I could pay any VAT that I have collected quarterly. Now if the above examples were the only EU sales that I had in a quarter I'd be sending 8p + 27p a total of just 35p to HMRC who would then send 8p to Switzerland and 27p to Hungary.
I would also need a postal address and IP address for every customer which I must keep a record of for 10 years. This all sounds really ridiculous and a lot of work for such small amounts of money.

You even need to collect the VAT if you link to online content or a download sent by a manual email! But how will they know?
Yet it is ok for me to charge just £1 (as in above examples) with no VAT and send a manual email with the digital file attached :)

So EU customers feel free to contact me if you would like to purchase a printable download and I will PayPay invoice you for cost of item minus VAT and will email the file to you within 24hrs, this in fact is how it used to be done before Etsy let us store our download files on their servers.

If I was to go ahead and add downloads to my online shop on my website then I would also need to look into software that would work out all the different VAT rates for my EU customers.

I realise that this legislation was put in place to catch the big fish like Amazon, Apple etc. but it's all the little fish that are being caught and drowned! I don't think it was really thought through.

Even with my little shop being on Etsy this still affects me, yet Etsy have implemented a system that works out and adds the VAT to my downloads for EU customers. As Etsy is based in the USA though my UK customers get charged VAT too, which they shouldn't as the £81,000 threshold does apply in my own country!

Still confusing!

Then theres this other thing thats annoying me...... If my EU customer pays with PayPal then PayPal charge me fees on total amount that gets paid into my account...ie. cost of item plus the VAT. Then when Etsy sends me my monthly bill which will include any VAT that I have in my PayPal account, they charge me the full VAT thus I'm out of pocket here!!!

This legislation affects so many micro businesses around the world and because of this some would rather not sell to EU customers.

So I'd like to say Thank You to the barmy Eurocrats for once again overly complicating something and putting yet another hurdle in the way of ordinay people trying to eek out a living and build a little business.

***Disclaimer: I do not claim to know everything or understand everything about EU VAT Legislation, this is just my very simple take on it. 

A few links below, but do a search there are many people and reports about this subject online.
VAT on Digital Services in EU
facebook page Digital VAT 2015  with helpful discussions
The Guardian
The Telegraph

So after all that heed nippy stuff lets finish with a little something that made me smile :)
Last week I went to the Falls of Feugh near Banchory and there is so much love happening there :)
Can you feel the love?

Love locks on the bridge

I wonder if Trish and Brian are locals

Laura's Logo

Laura from Laura Spence Photography asked me a few weeks ago to create a new logo for her business. I've known Laura for a good few years now, in fact she is family and I have always admired her work. She is an award winning baby photographer and she also photographs families and weddings, pop over to her website and see some of her work.  Laura wanted a round style logo and it had to have a baby within the design.

It was time to get my creative thinking cap on and after many stages of development I created the final logo design. Laura loves her new logo and is so happy with it, she couldn't wait to show it off and add it to her website. I love when my clients are happy :)

A little more about the process of developing the logo can be found in my portfolio on Behance.

My Puffin Heart Art is now printed on greeting cards and is available to purchase from my new shop and the Redwood Gallery in Echt, Aberdeenshire.

I've just mentioned my new shop but I will tell you more about this, my new website and Facebook page in another post soon. Over the next couple of days I will be working on a new design for my website, shop and Facebook page and get them all updated. I also need to make a section on this blog for Graphic Design.

Busy busy busy...

so busy I haven't had time to blog for a few weeks, but I'm back now with lots to tell :)

I took a week off and drove south to Fife to visit my family and friends. I had a great time and didn't manage to fit everything in that I wanted to do but that's good 'cause it means I'll have to go back again soon. Catching up and spending time with all my grandkids (I've got 7) was the best bit and they keep me young.

Since coming home I've been doing a mixture of  more decorating when it's been raining (we've had a lot of rain) and gardening when it's been sunny.

My Highland Coo Heart Art greeting cards have been selling well in the Gallery, so I got to work creating some more heart art. This time I did puffins, I love these strange wee birds, they have such a sad looking expression and a comical wee walk. I'm very happy with how this turned out and will be getting greeting cards and A3 prints printed soon.

I've also had some Graphic Design work for a client that I had to keep quiet about until the event had been launched. So now I can shout about it..... I created the logo for the Mary Queen of Scots Festival which is taking place in Kinross, Scotland in September. You can find their Facebook Page here. Below are examples of how the logo could look on promotional items.

I've also just started working on another logo design for a client, that I'll show off when it's completed.

As I'm doing more design work at the moment I was thinking it was about time I got around to updating my website, but me being me have decided to give it a whole new look, so that will keep me busy once I decide what I'm going to do. My portfolio can be viewed on my website or more images for each project can be viewed in my Behance Portfolio.

One decision I have made though is to keep Ainjewelz online shop just for Craft and Party Downloads and open another online shop for my Digital and Mixed Media Art, where I will sell prints and greeting cards. Once this shop is open I'll announce it here :) I have made a start though and have a new Facebook page for my Graphic Design Services and Digital & Mixed Media Art, this can be found here. Please pop over and give me a 'Like' and  a share. Eventually my website, Facebook page and online shop will all have the same look, once I decide on a design I'm happy with......I'm so hard to please! I'm my own worst client lol

I'm also working towards having enough work to display and hopefully sell at a local Art and Craft Fair so it's a good job I love to be busy!

..... and finally the sun came out and we had a day out, of course Gregor McGregor tagged along

Taking in the sea air in Banff

I was so busy taking photos I never noticed Gregor down a can of lager lol

the sea at Gardenstone looked like the Mediterranean, but it was unbelievably windy.

Had a great day out and hope to go back to the north east coast with my camera again soon when I have time to take a day off.

Where have you been on your sunny days off?

Introducing Gregor McGregor

I'd like to introduce Gregor McGregor, farmer, photographic model and all round nice guy :)

Gregor McGregor

Just a bit of fun and Gregor is small enough to stow away in my camera bag as he is only 3 3/4 inches tall.

 

Flowers for the Mrs

Gregor now has his very own Album on Flickr called The Adventures of Gregor McGregor where I will be able to keep a record of all of Gregors wee adventures, so he better start having some. If you're as daft as me pop over to his album and see what he got up to today lol

I used to have a wee buddy called Morag, but when I moved house she decided to stay in Fife and moved into my grand daughter Ellies dolls house. I've heard runours that she now has a fireman living with her, hopefully I'll meet him when I next visit. I will of course be taking Gregor with me so he can meet other little people, he might end up staying with them in the dolls house and partying all night. Who knows what goes on with these little people when we're not looking lol

Morag (taken with my mobile)

Oh well if my family read this they will think I'm starting to lose the plot talking about little people lol, but Gregor will help me with my photography and I can't help it if I have an overactive imagination.

You can with a Canon!

While at college studying HNC/HND Visual Communications I completed a couple of units in photography, but over the last year I have become lazy and have just been using Auto Mode/Portrait Mode/Landscape Mode etc. So to refresh in my mind what I have already learned and to learn more I have signed up to do an Advanced Diploma in Photography with the Institute of Photography. I must add that anyone who knows me, knows I'm not frivolous with money, so I waited till there was special offer and the course was half price.  Now after parting with money I intend to learn as much as I can and hopefully become a better photographer.

The first practical assignment was to practise using Manual Mode, so off I went today to practise.

I took loads of photos today but these are my favourites.

Peeweeps Field

Fern Fronds

Policy Road

Strawberries

Fence Post Crazy

I also discovered today I have a 'thing' for fence posts, going by the amount of photos I've taken of different ones over the last few days lol Is this a side effect of living in the countryside?

Time now to settle down with my strawberries and a wee glass of chardonnay and await feedback from a tutor :)

Birth of a Llama

Yesterday was another one of those Scottish days where the sun was really trying to shine but the rain clouds were dropping their wet contents on us every now and again.

We decided to have a wee drive to Inverurie and Banchory to visit our favourite charity shops to see if we could find a few bargains, which we did, but the best part of the day was on our way home.

As I had my camera with me, on the way home I asked OH if we could go the way that takes us past the field with the Llamas, this was to turn out to be the highlight of the day. Luckily the rain had stopped so I started snapping a few photos of the Llamas.

But wait! what was that I could see a little further down the field? Was that tiny legs appearing? Spring has sprung! and a Llama was having a baby :)

.......and a Llama was born. Well it wasn't quite that quick and easy for mummy Llama but I don't want to bore you with the 200+ photos I took so I didn't miss a moment.

I love how the peacock appeared on the wall to see the new arrival. I actually lost count of the peacocks that would appear from behind the wall and walk across the field. A couple of other Llama's, maybe Llama Aunties, came over to welcome the wee one into the world and help mum clean her baby.

The wee one was gradually gaining strength and was able to sit and hold its head high. With a little encouragement from mum it was time for the wee one to find its feet.

There was many shaky attempts to stand and wobbly falls to follow

the wee one eventually managed to find its feet

So glad I went to see the Llamas and had my camera with me. Mother Nature is wonderful :)

and just to finish off a few photos of the peacocks. The first is from behind the peacock while he was showing off his beautiful tail feathers. This is an angle I've never looked at a peacock before, but I find it just as lovely as from the front and so interesting to see all the white spines of the feathers. The guinea fowl on the grass is not interested though.

Then the peacock turned around to show off his fine feathers as the guinea fowl flew off.

and then it rained again! but that couldn't dampen my day :)

Dark Skies, Bluebells and Swans

Yesterday was a day for just going out with my camera for a while

*WARNING* photo rich post... but really only a small selection.

Summer still hasn't arrived yet and the sky at times was so dark, but I love big cloudy skies

I found some Bluebells that are still in flower

But the main reason I was out with my camera was I'd been told there was a flock of swans in a field near me, I have never seen so many swans at the same time. Sorry only 2 in this photo

I love the sound the swans wings make as they flew over me

and then how silent they can be as they glide in to land

I also found Mrs Swan sitting on her nest. Nearby was a heron but it flew off so fast before I could get a photo, I think I will go back here another day as I'm looking forward to seeing how many cygnets hatch.

A bit of a closer look at Mrs Swan

I took so many photos yesterday of all sorts of things, some of these will feature in another blog post soon.

Redwood Gallery

It's raining again today (Scottish weather, but thinking positive thoughts....Summer is coming!) I decided on a wee drive along to Redwood Gallery in Echt, Aberdeenshire this afternoon.

I love this little shop, it is packed full of amazing and beautiful things. The window display was bursting with colour that brightened up the dull day.

The other window had a lovely hand painted heart (bit hard to see from my photo) and I love the vintage cake stand. I can imagine scones and cupcakes on there, or maybe tiny triangle sandwiches and strawberry tarts :)

Over the next couple of weeks the gallery is running a Heart Shaped Art Exhibition ......which I know I've already posted about earlier today..... can't believe I've blogged twice in one day! Look at these paintings, such intricate patterns and beautiful colours,by Nicola Dallas. My favourite is the heart in the black frame. 

A tree of hearts

More hearts and could that be my very own Highland Coos?

 The Gallery sells a plethora of items, there's photographic prints......oh there's the Forth Bridge....I miss seeing the bridge.....must get down to Fife for a visit soon.

There's also original watercolours and oil paintings, jewellery and greeting cards. Sculptures, woodturned and carved creations. I like the use of the old (recycling) computer motherboard on this handmade wooden box.

 Theres also painted furniture small and large and a selction of vintage items.

Natural home fragrances

 Crystals

and just arrived today some amazing digitally manipulated photography prints by Beate Allerton.

WOW! these have to been seen,

and I mustn't forget there's also the worlds smallest Tearoom (unofficially).

The Gallery is well worth a visit :)

Have you been to Redwood Gallery? Do you have any work displayed there?

Heart Art & Local Gallery

Not far from me is Redwood Gallery and Gifts, I pop in now and again to absorb the creativity that is on display and I follow their Facebook Page. They also organise Craft Fairs in the village, which I also love to attend and you never know one day I might even get around to having a stall.

Anyway a couple of weeks ago Lin had posted on the Galleries Facebook Page that she was having a Heart Shaped Art Exhibition at the Gallery and was doing a shout out for art of all kinds to be submitted. Lin had wrote "Submission is open to everyone, whether you're a professional artist, or keen amateur or student. Don't be shy...take a deep breath and go for it."

Well what could I do? there was some umming and ahing, but then I took that deep breath and decided not to be shy. I was going to do this!

I had less than 2 weeks till submission day so sketchbook was out and lots of quick heart shaped doodles started to appear.

I decided to go with this one....What is it?..... well I did say they were quick doodles lol

This is Highland coos! Can you see it now :) I have a real love for these creatures and they were going to be the Heart Art that I created. 

I spent hours totally absorbed in Adobe Illustrator creating my Highland Coos, which are now in the Gallery on display and for sale. A3 Prints (unmounted and unframed) can also be bought from my online shop or pm me on my Facebook Page.

While ordering prints of my Highland Coos I also ordered some greeting cards to be printed too and these can also be bought at the Gallery or from my online shop or pm me on my Facebook Page.

I thoroughly enjoyed creating Heart Art and have a few other quick doodley sketches that might see their way to being created digitally and printed.

If you're near Echt, Aberdeenshire pop into the Gallery for a wee look, they also have the worlds smallest tearoom (unofficially) there.

I'd love to know what you thing of my Highland Coos and if you'd like to see more Heart Art.

I had a quiet moment the other day so created a new profile pic (which looks nothing like me lol) for my Facebook page. The tartan was created in Adobe Photoshop and the character created in Adobe Illustrator. The tartan is going to be part of something else I'm working on at the moment, all will be revealed soon.