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02 January 2015

A Word About VAT MOSS

Oh how I'm tired of this VAT stuff.

Fortunately, I have a lawyer who practiced tax law while in law school (as in, argued in the U.S. Tax Court against the IRS, helped fix seriously huge tax messes made by accountants), and who still has a great relationship with his tax law professor. So I think I've got some good sources for interpretation and legal advice.

Bottom line for me: nothing is changing.

I know, start clutching your pearls.

But what if . . .

And how . . .

Let me 'splain.

I am a citizen of the United States of America. My country is not an EU country. My country has signed no consumption/sales tax treaty with any EU country. We have income tax treaties, but that's about it.

Now here in the states, different states have different sales tax laws. My neighboring state, Oregon, doesn't have sales tax at all. Kinda nice, doing shopping over there. But technically, legally, if I buy things in Oregon, I'm supposed to pay the appropriate sales tax to Idaho when I file my taxes each year. See how that works? Idaho doesn't try to force Oregon businesses to do all the work. The work is mine. Granted, plenty of people circumvent this, and that's an entirely different discussion. But Idaho does not get to tell Oregon what to do. Sorry folks.

So why on earth would I be letting the EU, a governing body that has nothing to do with my life, tell me what to do with my business? We did that whole "righteous treason" a couple of hundred years ago over tax issues, and we can do it again. Sorry, this girl is a bit "liberty" minded, and I'm not about to roll over, close down shop for my EU customers, just because someone thinks they can make me shake in my boots. But if we want to go down the road of "you follow my laws because I say so," then I hereby declare the US Constitution universally applicable, and now first and second amendment rights are to be recognized the world over. How do you like them apples? :)

But what if I travel to Paris or London someday, on my dream anniversary vacation, and they put me in jail for tax evasion?

Not happening. Ever. Sorry, but no. That's not swagger. That's just common sense. There is no way on earth they have any kind of database available of who is and who is not doing their dirty work.

But what if they use the IRS to go after the small businesses in the US who aren't doing what they say? (chuckle chuckle heckle heckle)

Back to that whole "no consumption/sales tax treaty." The IRS will do nothing. You can take that to the bank.

So, my Craftsy shop is staying open. To any and all buyers.

Oh, and to back up my thinking, we did read the law. We read the UK's website. We read the official law. From what I can tell, based on this flowchart from the UK, I don't qualify because I only sell through a third party platform, and not multiple methods.

I hereby declare my independence from EU taxation laws. Calling upon Thomas Jefferson for some writing help.

In honor of my independence, I am hosting a "Screw You, EU" pattern giveaway. Open to all entrants: US, Canada, UK, EU, Africa, Russia, China, Australia, New Zealand, Mexico, Brazil - you name it, you're in!

Just answer me this one question: where in Europe would you like vacation, jail time or not? For me, I've got to go to London. With a side trip to Wales to sit in Jennifer's snug and knit. Giveaway ends next Friday, January 9th. Winner receives all 8 of my published patterns. And my pattern sale extends through the giveaway (all patterns $5 for everyone!).

*no disrespect is meant to any nation or people. I'm just tired of all the pearl clutching and shops shutting down!

38 comments:

  1. That is so hard to pick just one place in Europe--I have to go with Italy for the food. Good for you and your legal advice for doing what you believe is right!!!

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  2. I'd love to take my chances and visit England someday!

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  3. You go, girl! I support your stance :) I would love to go to Germany and Austria ;) Thanks for the giveaway,

    caribousmom (at) aol (dot) com

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  4. I like your attitude. Not sure if your drawing is limited to your EU readers. I'm In the US but would love to visit Scotland someday. I could listen to their Scottish brogue all day.

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  5. I love your spunk!! And I will join you in a visit to Jennifer's!!

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  6. So happen to read your practical, level-headed view on this mess! I'm so tired off all the drama too! Love the sale name and happy new year!

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  7. Good for you!!! I would love to travel all over Europe, but I think Ireland is number one on my list.
    slheaton85 (at) Hotmail (dot) com

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  8. Good for you!!! I love that you have a backbone and are willing to stand up for youself. There are so many beautiful places in the USA that I'd love to visit before I ever get to Europe. Thanks for the generous giveaway! ;-> Toni Anne

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  9. Finally someone who leaves the church in the village as we say here in Germany (meaning not blowing something out of proportion). This law is actually aimed at those big companies and marketplaces who were evading paying taxes by setting up shop in Luxembourg.

    I'd love to go to Lisbon someday.

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  10. London! And Scotland, and Ireland, then there's Germany, oh yeah, Switzerland, oh, and Italy..... the list goes on and on :)

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  11. Alrighty! You made that into a fun post to read. :)) No where I want to go except to bed in a little while.

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  12. I am glad to hear something positive about the EU Tax thing. I hope you are able to encourage other independent sellers to keep on.
    I am an Aussie so most of the world seems exotic to me. I would love to tour the UK taking in as much as possible, making sure to stop off in Wales. If I could be just a tad greedy, I would love to travel the Rhine or Danube on one of those lovely river boats taking in the sights along the way.

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  13. I would love to go back to Italy! Like that you're throwing caution to the wind ;)

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  14. I honestly truely and deeply love you for saying this! I live in Munich, Germany, and this whole VAT business is something the EU did and not the seperate States like Germany, Austria, Italy, ... . And here in Germany we're kind of sick of this whole EU business. So go girl, and my favorite vacation place to visit is Greece, all of it!

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  15. You tell em! I'd love to go to Germany for Oktoberfest.

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  16. Good for you! I have yet to publish any of my patterns, so I'm glad that I don't need to even think about it! The whole thing is just a bit crazy.

    To start, I would love to see Paris. My husband has been there several times, even though a few of those trips were for business.

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  17. Glad to hear that you're brave! Moi? I'd be a coward! LOL. :-) What country? It's more like a state. Alaska! :-)

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  18. Thank you for this update. Loved your clear and concise way of telling it. As for where I would like to 'vacation' in Europe - Germany would be at the top of my list!

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  19. Yah Lady....
    While I do not have a shop on line or otherwise I was sorta thinking the same things you just explained(with very impressive credentials i might add). Great to see and read. Because I can not limit it to one and only I have to say the British Isles with Ireland and Scotland and England. Saving up for it now in fact.

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  20. I thought that was strange and was wondering how they were going to charge you for selling! So glad to hear they can't. My daughter is in year 4 of french - we're going to France, England, and Ireland when she becomes fluent. I can't wait!

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  21. I would love to see England and Scotland.

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  22. It sounds like the Boston Tea Party all over again! LOL "No taxation without representation!" Didn't the UK learn the hard way that people on the American continent weren't going to pay taxes without a representative? We don't have one on the EU. Sometimes, you've gotta love the "rebellious" side of the US. :) As for my craftsy & Etsy shops, they're still open too. I'll happily pay taxes to the EU--if they find a way to get them through the IRS (and along with you--good luck).

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  23. I thought that was strange and was wondering how they were going to charge
    you for selling! So glad to hear they can't. My daughter is in year 4 of
    french - we're going to France, England, and Ireland when she becomes
    fluent. I can't wait!

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  24. It sometimes feels like all we do over here is pay tax after tax after tax. I love working in London and feel blessed to return home each weekend to my home in Wales (sat in my Snug as I write this, Jennie!) and am lucky to have visited many European countries but I've never been to Austria so would love to holiday in Vienna one day :)

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  25. There is some fabric I would like to get my hands on out of England and I would love to see the castles of Germany. Cindy bluemoonstencils@yahoo.com

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  26. Best. Post. Ever! Seriously, I read the whole thing to mu hubby who was still having cool down chuckles a minute later. Good ponts and great writing.

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  27. What a great post! I dream of visiting London with its Liberty of London store and Cath Kidston shops!

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  28. Loved your spunk and tenacity. Thanks for the post. Having lived in Europe twice, I feel for their overtaxation, but they have grown accustomed to their government sponsored services. I would go back to Italy. I absolutely love it there. Thanks again for the post. Camille@focus20.com

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  29. Oh my, how can I choose? How about a month long grand tour? I'd never be able to afford that! I guess the top of the list is England!

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  30. This is really sensible. I'm all for paying my taxes, and I pay a lot of taxes, but this is all untenable. I'd go to Iceland!

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  31. Love your spunk! I think it's great that you are standing up for what you believe in. I would love to go to Wales to Jennifer's snug to knit with you. Love you blog!

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  32. I love your stance on this. First one that makes any sense to me. I would go to Italy.

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  33. Well, choosing just one European country is a bit out....if we ever manage to come up with the money, we'll be hitting most all of them, lol. Having said that, the first one we'll visit will be the UK (England, Wales, Scotland) with a hopeful stop over in Ireland at some point, just for family and history reasons. :) And speaking as someone who was about to start selling patterns, I'm REALLY glad to read your post!!! :) lol, Designers unite! ;)

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  34. Since I started digging into my family history 20+ years ago, my bucket list includes a trip to England and/or Scotland. I have discovered so many fascinating stories and places that I want to see them thru my ancestors eyes. But, that's another passion besides quilting. Thanks for the chance to win the patterns. I have plenty of stash I could use up on them.

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  35. I like your attitude! I'd love to go to Paris!

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  36. Love it!! Paris for me, or Scotland, or Italy or...anywhere!! I an easy.

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  37. This is THE best VAT MOSS related post I have read. And I really enjoyed reading and rereading it, Jennie Tracy. I sure would appreciate it if I could ask you a question. If you were to sell to an EU country and were concerned about the VAT MESS issue, would issuing a refund after the sale nullify the sale? Would they still consider it a sale?

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"The more things you do, the more you can do."

Lucille Ball