Due to fundamental changes in EU VAT legislation which come into play on 1 Jan 2015, all B2C digital download service providers selling direct into the EU must charge VAT at the customer’s local rate. The new “place of supply” directive affects very many world-wide online businesses including most sample library developers who sell and supply direct to the public over the internet. Frustratingly the new directive was very poorly publicised in the UK and left a tremendous number of smaller businesses unaware of the impending situation. To achieve direct compliance would require VAT registering in all 28 EU states posing a huge burden on small businesses due to a mountain of extra paperwork. For this reason Hideaway Studio and several other independent sample library developers are in the process of migrating our payment and digital download facilities to fully compliant intermediary services. The migration and subsequent testing is likely to take a number of weeks to undertake and I regret that during this period the current purchase and shopping cart functions will be disabled from 1 Jan for customers from all regions. I apologise in advance for the inconvenience this causes.
It is worth noting that there will be two direct consequences of these changes. Firstly, all very small or incremental downloads such as the individual Blue Zone releases will no longer be available as the VAT and commission on these products no longer makes them viable. With this in light the blog entries covering the incremental TBZ releases will be moved to a separate area for reference with the original blog still covering all major releases. For customers who wish to complete their Blue Zone library then please contact me for a solution. On a positive front this will help to make the blog a little more concise and easier to navigate. The second consequence is that in some EU countries (but not including the UK) the Hideaway Studio libraries will appear a little more expensive. Customers must understand this is entirely out of my control and all VAT levied on EU customers will be collected by the intermediary and returned directly to the appropriate tax authorities. For businesses that are currently VAT registered there should be a mechanism available to enter your registration number.
I will keep you all informed of progress during the migration period.
In the meantime, if you have any enquiries or are urgently in need of a product, then please contact me through the email address provided in my newsletters.
Wishing You all a Happy New Year & As Ever, Very Many Thanks for All Your Support!