Friday, 26 December 2014

My VAT MOSS Solution and a Pattern Sale

As some of you are possibly aware, the EU is bringing new VAT legislation into effect as of 1 January. In effect it means that everybody selling digital products (such as pdf quilting patterns) to anybody in the EU must charge VAT (value added tax) at the rate of the country that they are selling to.

The legislation was designed to stop the big boys (such as Amazon) from setting up shop in low tax countries and circumnavigating higher taxes in other countries. Unfortunately, at the moment it would seem that those who are hardest hit are those of us with teeny tiny businesses. No matter where in the world we live or how small our income, we are being forced to either agree to a lot more bureaucracy, stop selling to EU countries or to shut up shop completely.
I have been patiently waiting to see how this legislation will affect me and to see if Etsy and Craftsy will do anything to help those of us who sell through their platforms. Although both Etsy and Craftsy are taking steps to help in the collection of these taxes, their solutions are just not workable for me. I have neither the time, the energy, the inclination nor the resources to deal with these tax returns myself. As a result, I am reluctantly shutting my Etsy Shop and will only stock a few free patterns in my Craftsy store. I remain hopeful that this will be a temporary measure, but only time will tell how this all pans out.

I feel a great deal of frustration as I have spent a lot of time and energy building up my stores and was beginning to see pattern selling as a realistic way for me to gather income while still remaining at home where I can be available for my children. Now I just don't know what is going to happen.

BUT there is good news, I am not shutting up shop completely. For the time being I am moving my patterns onto a different platform called and I am looking into other options. If you look at the top of my blog, you will see a new tab called "My Store". This is where you will now be able to buy my (VAT compliant) patterns. I will keep you posted as to when and if my patterns become available from other platforms.

Please bear with me, it will take some time until I have uploaded everything. It is the Summer/ Christmas holidays over here, the whole family is on holiday, I have family visiting from Europe and I am also trying to put the finishing touches on the patterns for the In Flight Quilt-Along so patterns will not be uploaded overnight.

Talking of the In Flight Quilt-Along. That is DEFINITELY still going ahead. I can't wait to tell you about all of the prizes and to start sharing the patterns. I must admit that I was hoping to kick things off on 1st January. Unfortunately, this may need to be delayed for one or two weeks, as reading up on this VAT problem and finding a workable solution has cost me a lot of time and energy over the last month. This was time that should have been spent on finishing the In Flight patterns.

No matter what, the QAL will start in January as promised and I will keep you up to date regarding dates and details.

Sorry for this long business type post, but I felt it was important to keep you all up to date with where I stand.

For those of you who have stuck with me till the end of the post, I have some good news. I am holding a closing down sale at both of my stores.

Until the end of 2014, I have reduced the price of all patterns in my Craftsy store.

Use the code VATMOSS in my Etsy store for a 40% discount.

Wishing I had a more cheerful post at this time of year.

Juliet x


  1. I'm sorry to hear about all this red tape you have come up against. Glad to read that you have found another platform and that others may prove viable for your business in time.

  2. I was really hoping to get your elephant pattern for Christmas, but didn't :( I don't see it listed in your ety shop... May I purchase a copy directly from you before new year?

  3. What a mess for you. Hope it works out and you have a great Christmas.

  4. I'm still trying to work out what to do, I think my one single sock pattern will come off Craftsy in the meantime and I'll keep it on Ravelry which seems to be making more of an effort. For me with the sale of about 4 patterns per year (I don't know where to) it's not worth even trying to do the tax thing myself and to be honest it still seems against common sense to have to pay tax in a country that I am not a resident of. I think the new regulations are likely to see a lot of small businesses close down completely in many countries. I know they're trying to net Amazon and similar companies but they could end up losing a lot more in the long run unless they bring in some way around it all for the little guys

  5. Seems to me there could be another solution for stopping the big businesses from taking advantage. So sorry this is happening. Does it also affect your sales to the US and Canada? Good luck circumnavigating this glitch.

  6. I am so sorry that you are going through this. You are one of my favorite pattern designers and I will buy your patterns even tho you have to add this tax. Believe me I will go to your Craftsy site and buy what I don't have. I do like getting patterns from Craftsy as they are all in one place, but I am willing to learn something new. I look forward to your In Flight Quilt Along. Thank you so much for sharing this with us.

  7. I need to sort out this issue this week too. I have, in the meantime, purchased those patterns of yours that are my most favourite. I will be watching for the QAL, it's not an issue if it is delayed a little.

  8. So glad you're finding a solution to this silly VAT problem. I love your patterns and look forward to seeing what's next for you in the New Year!

  9. Thank you for sharing! I've been wondering how the work-around would happen, but I had been hoping that etsy and craftsy would be doing more. What a mess! Please update again in a few months on how the new site is working for you.

  10. I was so surprised to hear about the whole VAT thing, I had no idea and I live in the EU, it really sucks, I hope that Payhip works out or that Craftsy and Etsy find a better method.

  11. Have you heard of Patterns to Print? The blogger Sewing with Mrs H has set up a new platform with her husband to help quilt/sewing pattern makers in this predicament. Just thought Id pass the news on, hating seeing some of my favourite bloggers close shop


  12. Happy to see you've found a way but cripes... such an annoying mess! I hope it goes ok for you and the new platform is trouble free xx


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