If you’re a new start-up you may not yet know that EU digital VAT rules could, or will, hurt your small business. I don’t want to burst your bubble of excitement when you’re starting out. But you do need to know of any potential impact that EU VAT could have on your business plans.
How Do These EU Digital VAT Rules Affect My Website?
The ‘new’ EU Digital VAT rules came into force on 1st January 2015. These affect websites that sell digital products/services to customers based in EU countries. These rules are being extended, in the not too distant future. The rules will apply to physical products that you may already be, or are thinking of, selling online via your own website.
- If your existing business is focused on selling digital products, chances are that you’ll know something about these rules. [Assuming you’re not ignoring them].
- Is that you but you’ve got it all covered? Then do pass on by this article.
- You don’t offer digital products and you don’t plan to sell physical goods, to EU based customers? Then you are not currently affected.
- You’re unsure, or you do sell/plan to sell physical products online? Then read on & check out the resource links section below for more detailed information.
Website Tools, Functionality and Design
If your business is affected by EU VAT rules, then your website tools/functionality requirements will need to be sufficiently robust. Importantly, these need to facilitate your ability to make sales within the prescribed rules and be integrated into your website.
These are important things to note, especially at the early stages of your business and website planning.
Your website design, how it looks online, will need to accommodate layout and styling. Including for any functionality [plugin etc] that is used in the ‘behind the scenes code’ of your website. You could also require the creation of additional web pages.
We’ll discuss your custom website design, build needs and budget with you early on, to allow for these aspects of your website development.
Not working with us? No problem, just make sure that you discuss EU VAT with your designer. Feel free to send them to this page and the resource information if they need to learn more.
I can’t offer you a ‘one-size-fits-all’ solution. Every business is different. Therefore, a solution for your business may be very different to that of another business.
- There are a small number of software solutions on the market, not all of which are sufficiently robust to ensure that you remain safely within the rules for charging and reporting EU VAT to all EU countries.
Wherever you are located ~ Burying your head in the sand isn’t an option!
There remains a lack of awareness by small business owners and solo entrepreneurs of EU VAT rules and how it may hurt their small business. Many micro businesses worldwide have closed down their businesses. Others are now selling via third party websites. Others are ignoring the issue completely and hoping to ‘stay under the radar’!
Your business needs to grow, not hide!
It’s very tempting to bury your head in the sand and hope it all goes away, but it isn’t going away! So face up to the issues now. Become informed and get covered. Research EU VAT now. Your research will inform your current and future business plans and guide you on the type of website design and functionality needed.
Get the EU VAT Key Facts BEFORE Building Your Website
Click the image below and you’ll be taken to the key facts page for EU VAT information.
DISCLAIMER: The information in this page is for general guidance only and does not constitute legal or accounting advice. Please contact an accountant or your local tax authority for more information.
Although I am unable to give you specific financial or VAT advice, if you still have a question contact me here and I’ll do my best to point you in the right direction.
When you choose to work with us, we’ll discuss your custom website design, build needs and budget with you early on, to allow for these aspects of your website development.