Sunday, July 02, 2017

Behind The Scenes: EU VAT

Hey guys,

Running Splat! is not just about Gunging the guys and putting out the best shows we can. There are many little and big things that happen everyday behind the scenes to keep the site online and things running smoothly. We will be posing a number of posts, starting with this one that detail some of these behind the scenes challenges we face.

One of these is our VAT obligations. We currently don't charge VAT on our sales from the UK as we are currently below the threshold, but we do have to do this for customers buying from inside the EU. Two years ago the EU passed the EU VAT on E-services law meaning that any business supplying downloads to any EU country will have to report and pay VAT on these goods.

Since we offer video and picture downloads, we are required by law to report these sales. We have to report these sales on a quarterly basis and pay the VAT due to that respective country where the customer is based. To say this is a nightmare is a understatement.

Today we have completed our latest report for Q2 2017 and paid the tax due on the downloads from our viewers and fans in the EU. We want to thank all our EU based customers who have downloaded a show over the last three months, we are pleased to be able to offer our EU based viewers access to our shows by not blocking sales to the EU. A practice that has sadly gained popularity since the law was introduced. We would rather do the work so everyone has access to our shows, regardless where they live.

Also, it's also worth mentioning that we do not charge our EU customers extra to download the shows. We simply take the hit ourselves and pay the tax instead of increasing the prices for our EU customers. All our shows are inclusive of any Tax, and we have no plans to change this.

No comments: