The new European Union VAT regulations, which come into
effect on January 1st, are a big worry for all online
Yes, even those who are not from within the EU!
I’m no accountant and find the new laws very confusing, but
the best summary of the situation that I’ve found is here:
EU VAT Changes Explained
Please read it if you sell anything digitally – even as an
affiliate. And please also point your accountant at the
article and ask them for their advice.
Briefly, as I understand it, the new law changes the
collection of VAT (what we in Europe call sales tax) from
the location of the seller to the location of the buyer.
That sounds simple enough, but the problem is that the new
legislation is littered with inconsistencies and
I won’t go into them here – read the excellent article.
Suffice it to say that most of us will be breaking the law
come January 1st – no matter what we do!
Currently, the only sales platform that I know about that
will comply with the new EU rules, and remove the need for
us to worry about VAT completely is ClickBank. When you sell
a product through them they become, in effect, the product
owner and take responsibility for the collection and payment
of the VAT.… Read the rest