Tuesday, November 25, 2014

Changes For EU Customers after Jan 1st 2015

UPDATE: After some clarification, these new rules do indeed effect us. This means from the 1st of Jan all EU based customers (excluding the UK) will be banned from buying from us. Please use our UMD store instead here http://splat_hq.umd.net if you are from the EU. Thank you for your understanding and if anything changes, we will update this post.

Original blog posts follows below.

This is an important update to any customers who live in any EU country, excluding the UK.

On 1st January 2015 the way that VAT is taxed on digital goods and services sold to EU customers is changing. We will have to pay VAT on every sale to any EU country.

PAW Media UK, the owner of Splat! HQ is a UK based business that currently does not charge VAT on its products. This is because we currently trade below the 12 month turnover threshold. Sadly, when new EU VAT rules come into effect on Jan 1st we would have to pay VAT on ANY sale to a EU country to their respective tax authority.

If we were VAT registered in the UK it would be quite a straight forward process to do this, but since we are not we would have to register with every EU member state in which we trade into. Since we are not VAT registered in the UK, and we do not have to be at the moment since we are trading below the said threshold for a UK business, we cannot use the system set up by our own Tax authority, HRMC which requires us to be UK VAT registered. Becoming VAT registered here in the UK would force us to increase prices by 20%. We will only charge VAT when we need to after reaching the threshold set out by OUR government.

So what does this mean?

Sadly from Jan 1st we will not be able to accept any orders from any EU country (apart from UK). If you are from a EU state and place an order it will be simply denied and a refund will be issued.

Does this effect UK based sales?

No, since PAW media is located in the UK and we are trading below the current UK VAT threshold we would just carry on as normal processing orders from the UK and the rest of the world. Only orders from other EU states are effected.

I am from a EU country, what can I do?

While we do receive orders from certain EU countries, the numbers compared to UK and US are small. Germany, France and Spain are our biggest customers but even then these are just small compared to our other sales from other territories.

From Jan 1st, YOU cannot buy shows directly from our website. As previously mentioned, these will be denied and a refund will be issued.

EU customers can use our UMD store

But fear not, if you are EU customer you can still purchase our shows through our UMD store. Since our UMD store is a marketplace that is not owned or run by PAW media you will be able to pay and download our shows from our UMD store.

Click here to see our UMD store.

We hope this has been informative to our EU customers. Remember that these changes only take effect on Jan 1st, so you do have a little time left to get any orders in via our website. On and after Jan 1st 2015 you cannot use our website to download but you can however use our UMD store.


Please click here and sign to the petition to get this VAT rule changed! 

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