Posts Tagged ‘VATMOSS’

  1. Our Etsy shop is now charging VAT to EU customers – #EUVAT Update

    July 23, 2015 by Faffy Tea

    For anyone following the ‪#‎EUVAT‬ saga, Etsy have finally changed their checkout system to include a solution for collecting VAT for EU customers buying instant downloads like those in the Faffy Tea shop.

    Etsy Shop now charging VAT

    However if you’re in the EU, this will mean that our prices on Etsy have increased to include VAT. It will not affect our customers in the US, Canada, Australia etc.

    For some background information, an EU ruling came into effect in January, stating that VAT should be charged on all digital goods and products sold to EU consumers at the VAT rate of the buyer’s country (not ours in the UK), and that most significantly unlike physical products there is no profit threshold before a business has to charge it. They have to charge it on their very first sale. Because of the complexities of this for tiny businesses, the UK government ruled that as a marketplace, Etsy should be collecting and dealing with this VAT (not the sellers). We have been waiting patiently for them to implement this into the Etsy checkout system which they have just done overnight. Etsy display prices including VAT differently for each logged in member from the EU, and then the tax gets collected from the purchase and paid directly to your country’s revenue service (we get no extra money).

    So from today, if you are logged in to Etsy from the UK, Ireland or another EU country, you will notice that all of our products are more expensive as the price now includes your country’s VAT added to the price.

    We are really sorry about this, it is EU law, and we hope that an extra few pennies won’t put you off buying from us.

    Meanwhile, action groups are still lobbying for tiny businesses like ours to have a small profit threshold before having to charge VAT – just like all other businesses selling physical products and those selling business-to-business. Please sign the petition at We’ll keep you updated!


  2. Faffy Tea’s Etsy shop is back open!

    January 9, 2015 by Faffy Tea


    We're back! #EUVAT #VATMOSSWe’re really pleased to announce that we are back open!

    HMRC have made it very clear in the last week that it is Etsy who is liable for collecting and submitting the VAT required by new EU law, and not individual sellers. Now that the UK government have clarified they will be only chasing Etsy for VAT, we have decided that it is safe to reopen Faffy Tea:!

    We will still look to sell our products on a new marketplace very soon.

    Thank you for your patience!


  3. Faffy Tea’s Etsy shop is closing due to new EU VAT rules

    December 23, 2014 by Faffy Tea

    We’re very sorry to announce that we will be closing the Faffy Tea Etsy shop from January 1st 2015.

    There are new VAT rules for selling digital products to EU countries that come into force that day, and Etsy has made it impossible for sellers to comply with the new laws, effectively rendering all instant download products on Etsy illegal. For this reason we are extremely sad that we will be closing, and you will not be able to buy Faffy Tea products from January 1st.

    However, there is a huge amount of backlash at the moment so anything can change. Our plan is to sell our printables via a new marketplace, and we’re aiming to get this ready by the end of January or early February.

    In the mean time please continue to download our free products, and follow us on Twitter for up-to-the-minute news.

    You can also visit the EU VAT Action Team website if you think this could affect your business too:

    We have to add that we’re extremely disappointed that Etsy are not helping their digital sellers. The company is supposed to be ethical, friendly and a community at heart. They are going against the advice of the UK Revenue and Customs, and not listening to the needs of their sellers. #EUVAT #VATMOSS #VATMESS