I have received so much positive feedback about my last post about the new VAT tax law changes in the European Union, effective January 2015, and whether it will affect you as an entrepreneur. (If you didn’t see it, no worries – you can find it HERE.)
My heart has been breaking the past few weeks.
I keep hearing of stories of entrepreneurs and coaches who are:
- Taking down their automated programs.
- Shelving their most popular programs because they don’t have a “human component” to them.
- Not sleeping because they are so worried.
- Throwing in the towel and closing down their business altogether.
All because these VAT laws scare the britches off of them. And that just totally bums me out.
I know this VAT stuff isn’t super-exciting, but it is important. Really important.
So, today I want to give you another key tip to make dealing with VAT that much easier for you.
The new changes to the VAT law provide that online platforms are required to record and calculate VAT for their clients.
This is GOOD NEWS for us as entrepreneurs because we don’t have to record or calculate VAT ourselves. We still have to pay the VAT, of course, but we don’t have to do the math.
This makes VAT calculations super-easy for you. What a gift! O.M.G. I can’t even tell you.
What this means for you is that IF:
- You use an online platform, AND
- You sell “digital” products and services with little or no “human interaction” through the online platform, AND
- You have clients/purchasers who live in the European Union….
THEN you will want to make sure that you are all signed up with your online platform to have them begin recording your VAT starting in January 2015.
You may need to “check a box” in your platform account to show that you are authorizing permission to them to allow European clients to purchase your digital products.
Be sure to check into what you need to do with your online platform provider BEFORE January 1st.
For example, I use Simplero and Calvin Correli sent out an update in his recent e-newsletter to let us know how Simplero is ready for the change and what we needed to do.
(And if you aren’t signed on an online platform up yet, I HIGHLY recommend Simplero, which was created by Calvin Correli who is a B-Schooler. I chose him because not only does he give excellent service and rates but he really takes care of his customers. Disclaimer: I am not his affiliate. I just love Calvin and Simplero.)
If you are brand new or you DON’T use an online platform yet, don’t fret! There are tools to help you calculate the VAT if you have European clients. Check out Taxamo as a place to start.
BTW, I am only hitting the high points with VAT in these posts because:
- I don’t want to overwhelm you by jumping into VAT all at once
- I am not a tax attorney or accountant so you need to dive deeper with peeps who live and breathe VAT on a daily basis, and
- I much prefer helping you take simple, easy, clear legal steps to protect and support your business (like Website Disclaimers, Client Agreements, Trademarks, and LLCs) … and VAT is DEFINITELY not light and breezy!
Please do not let VAT scare you away from building your dream business and continuing to do the work that you love. It is just a tax. It is only a tax. Don’t give it the power to squash your dreams of having a business with ease and freedom. As Marie Forleo says, “everything is figureoutable”… including VAT!
What questions do you have about VAT? Feel free to schedule a free 20-minute Legal Chat and I can point you in the right direction.
Here’s to getting Legally Enlightened™ – and to making VAT easier for you!
p.s. If you haven’t gotten your Website Disclaimer yet, take advantage of my holiday sale! 30% off until December 31st! (Yes, a lawyer having a SALE! It’s unheard of, I know!) Grab it now while it lasts…Happy Holidays!