UK e-book prices to rise from 1st January 2015

[Josieb1]

Also I've recently found out that Baen isn't charging the Vat either, how can some companies get away with it and others don't?

[BearMountainBooks]

Originally Posted by Josieb1

Also I've recently found out that Baen isn't charging the Vat either, how can some companies get away with it and others don't?

They may be eating the cost until they can implement something in the software. It's a HUGE headache with all the different VATS and if they didn't have a system for it before, they either have to pay to add a system or eat the cost (which usually results in a rise in prices across the board to pay for it.) A rise in prices is probably how I will eventually handle it on my blog store if it becomes a problem. I do sell a few copies abroad. Right now that is such a small amount I will probably end up eating the cost. Some of it depends on how it goes and how many people are inputing their address in paypal (that is the way I determine where someone lives). I can add a tax to certain locations (and if I did it would be a straight amount across the board for foreign purchases).

I got an email from Amazon again last week and it sounded like they hadn't actually finished applying the changes to all books, but reminded us it was happening and the new rules, etc.

[HarryT]

Originally Posted by Josieb1

Also I've recently found out that Baen isn't charging the Vat either, how can some companies get away with it and others don't?

Baen aren't based in the EU, and are outside the jurisdiction of EU law. Amazon, Kobo, etc, are registered as companies in the EU and are hence subject to EU law.

[BearMountainBooks]

Originally Posted by HarryT

Baen aren't based in the EU, and are outside the jurisdiction of EU law. Amazon, Kobo, etc, are registered as companies in the EU and are hence subject to EU law.

Does that mean I'm outside too and don't have to worry about it (not that I was spending huge cycles worrying). I thought it mattered if we had buyers from the EU.

[HarryT]

Originally Posted by BearMountainBooks

Does that mean I'm outside too and don't have to worry about it (not that I was spending huge cycles worrying). I thought it mattered if we had buyers from the EU.

If you sell books through Amazon, Kobo, etc, then they will charge VAT on your behalf, but if you're selling directly to end users and you're outside the EU, EU laws don't apply to you.

Oh, the EU will say that you're supposed to charge people VAT if you sell to them directly from your website, but there's absolutely nothing they can do to make you do so.

[BearMountainBooks]

Originally Posted by HarryT

If you sell books through Amazon, Kobo, etc, then they will charge VAT on your behalf, but if you're selling directly to end users and you're outside the EU, EU laws don't apply to you.

Oh, the EU will say that you're supposed to charge people VAT if you sell to them directly from your website, but there's absolutely nothing they can do to make you do so.

I kind of assumed they couldn't do much and I don't sell enough for them to even NOTICE me. But it's still a pain in the neck. Well, for now it's taken care of. I think I've done all the various retailers that I know about. Google play hasn't said how they are doing things, but I think they slap VAT on after list so that shouldn't be an issues. Well, matching prices could still be an issue, but we'll see. Most overseas sales come from Kobo for me.

[Josieb1]

Originally Posted by HarryT

If you sell books through Amazon, Kobo, etc, then they will charge VAT on your behalf, but if you're selling directly to end users and you're outside the EU, EU laws don't apply to you.

Oh, the EU will say that you're supposed to charge people VAT if you sell to them directly from your website, but there's absolutely nothing they can do to make you do so.

Two U.S. based ebook sellers now charge me 20% VAT, do you have anything I could email them a link to that might get them to change this?

[Josieb1]

I found this online. It looks like US companies should already have been charging VAT but they hadn't. I guess the ebook sellers I buy from don't want to chance the taxman going after them. Baen may get caught eventually. Its just a rough deal for those of us who are paying that tax as its even less of a fair system now than it was.

http://www.taxamo.com/us-digital-companies-eu-vat/

[HarryT]

Originally Posted by Josieb1

I found this online. It looks like US companies should already have been charging VAT but they hadn't. I guess the ebook sellers I buy from don't want to chance the taxman going after them. Baen may get caught eventually. Its just a rough deal for those of us who are paying that tax as its even less of a fair system now than it was.

http://www.taxamo.com/us-digital-companies-eu-vat/

That's what I meant by my earlier post, Josie. The EU are telling US (and other) companies that they should be charging VAT to EU customers, but do they have any mechanism to enforce it? Unless the company concerned is also registered in the EU, it seems unlikely that they do.

[Josieb1]

The two retailers that I specfically use probably don't want to risk it. Baen is probably bigger and are prepared to see what happens. Personally I'll have to buy less books. I just feel very sorry for the authors.

[Fbone]

Originally Posted by HarryT

That's what I meant by my earlier post, Josie. The EU are telling US (and other) companies that they should be charging VAT to EU customers, but do they have any mechanism to enforce it? Unless the company concerned is also registered in the EU, it seems unlikely that they do.

If there is no mechanism now, there might be one in the future.

What is stopping Amazon, Kobo, etc from changing their HDQS to a non-EU country? Lease an office and file some paperwork?

[rkomar]

Originally Posted by Fbone

If there is no mechanism now, there might be one in the future.

What is stopping Amazon, Kobo, etc from changing their HDQS to a non-EU country? Lease an office and file some paperwork?

It might mean losing the low corporate tax advantages that, say Ireland, offers.

[HarryT]

Originally Posted by Fbone

What is stopping Amazon, Kobo, etc from changing their HDQS to a non-EU country? Lease an office and file some paperwork?

In the sake of both Amazon and Kobo, it's because the majority of their sales are physical goods, and it would be uneconomic to conduct all business through international mail.

In the case of a company selling purely digital goods, I honestly don't know. There may well be some enforcement mechanism, but I don't know what it is. Do you?

[BearMountainBooks]

Originally Posted by Fbone

If there is no mechanism now, there might be one in the future.

What is stopping Amazon, Kobo, etc from changing their HDQS to a non-EU country? Lease an office and file some paperwork?

There is more and more cooperation between countries on taxes (See how Switzerland turned over records without batting much of an eye and they were known to be friendly to foreign money for years). It would be a lot of trouble and they'd end up in court and probably have to pay eventually. I won't mention again that locals paying the tax are the only ones who might be able to make a difference.

Re: Baen They are probably paying the tax or planning on it. It was probably cheaper for them to eat the 20 percent than pay for a software upgrade. Software changes can cost millions. They are very small and upgrade those types of things very, very slowly. If their presence is small overseas by percentage of overall sales, the software changes may not be worth it to them. Or, they may eventually curtail sales over there if it becomes too big of a headache.

[Fbone]

Originally Posted by HarryT

In the sake of both Amazon and Kobo, it's because the majority of their sales are physical goods, and it would be uneconomic to conduct all business through international mail.

In the case of a company selling purely digital goods, I honestly don't know. There may well be some enforcement mechanism, but I don't know what it is. Do you?

No, I don't. This may encourage customers to "travel" when purchasing digital products.