William Goode’s Journal 2015 EU VAT tax update on how it affects Australian digital musicians and small businesses.

Well I have kindly been told by a person on Twitter after I left a message out there trying to confirm if the new European Union VAT tax would affect Australians and this is so, it does apply to anyone selling to an EU country from outside of the EU. Good old Twitter, quick responses too.

I also have this link to the European Commission Taxation and Customs Union which gives some really good information on the tax rules as they apply to the EU and outside sales to the EU.

I guess people have to remember it is digital suppliers this year but it is planned to include all sales next year.

I don’t know how this will affect Ebay, PayPal, Etsy etc etc. As I mentioned in my last post the online music service Bandcamp has already on their blog said they will look after the taxes admin. You can read their site for more information. Sites like Etsy have said they will not be looking after the tax for  consumers, mind you they have mainly non digital items. I guess we’ll see when it affects their business next year when all sales to the EU are affected.

Until I get more info…au revoir.

William Goode’s Journal – The new 2015 EU VAT tax laws and how it affects digital artists and musicians.

From the 1/1/15 the European Commission introduced new VAT tax laws which will affect many small businesses and micro traders who provide digital services. This of course affects musicians as well as other digital artists. The new laws at this stage are for digital sales only with all other products supposedly to be covered by this law next year.
The new VAT tax law essentially requires businesses who sell digitally to pay the tax at the rate of, and record the details according to the country the digital download was sold to instead of where the supplier is located. In other words, the seller must find out where the buyer is located and then apply the local tax. This means if you sell from the UK to a French buyer you have to pay a French rate of tax to the French tax department. From what I gather there are 75 different taxes accross all the 28 markets.

I’m going to do more research in relation to an Australian seller who for example may sell a song download to a European buyer. This would affect myself and other non EU sellers of course. I only have music up for a focus and for the amount of sales I have it wouldn’t be worth the effort to go through the administration of the tax.
As a musician for example this will affect your sales when a person pays for a song download from the EU.

At the Bandcamp blog, Bandcamp say they will take care of the what sounds like to me, the admin of the VAT tax laws. You can read what they have to say and contact them for more information. I would imagine this would affect these type of services enormously too should a lot of independent musicians bow out due to it not being worth their while time wise to chase up and record sales for each territory they have a download in.

The idea of the tax is to stop large corporations setting up in low VAT tax countries and exploiting the system. This is all very good but as a by product it will wipe out many independent musicians, artists and all those small businesses involved in digital downloads and of course all items are to be part of this tax next year. Already I have read of musicians pulling out of online sites due to this whole process not being worth their while due to their small sales.

Information gathered by online businesses has to now be stored for 10 years, this is all your credit card and other relevant details which can include the information below. Sellers must store two pieces of non conflicting information about their buyer. I found this list at the screaming frog blog site:

The billing address of the customer
The Internet Protocol (IP) address of the device used by the customer
Customer’s bank details
The country code of SIM card used by the customer
The location of the customer’s fixed land line through which the service is supplied
Other commercially relevant information (for example, product coding information which electronically links the sale to a particular jurisdiction)

I will be looking into how this affects Australian digital businesses as I am still a touch vague on the laws around this.

In the meantime there is a petition going around the web which some of you may be interested in signing.

William Goodes Journal- Disaster Capitalism

What are some handy management skills?

Well, one skill that some multinational management teams (or whoever takes this path can do) is to know how to make a packet when disaster strikes, during someone else’s disaster of course. There is an actual term for it politically it’s called “disaster capitalism”.

Small organisations should they be inclined and capable of a watered down version, can do this too. The bigger private corporations who have the skills and resources become involved with aid agencies who gather the funds. Then the multinational corporations use their experience to distribute and organise the $’s, of course.

The honeymoon doesn’t last long for the population involved in the disaster. The money given by citizens from around the world is ear marked into going into capital expenditure for the private contractors.

We as ordinary citizens are way behind (or should I say wouldn’t go there ethically) in what some people are capable of to make big bikkies.

Chasing the dollar is what it is all about. There are some real charmers in this world.

Here is a real world example from the Age yesterday concerning aceh.

William Goodes Journal – A new ep, maybe?

Well it’s been awhile since Calum MacDonald has released any new material. For awhile now I’ve been throwing ideas around in my head and maybe it’s time to pick up a guitar. However the time is still not quite right, near but not quite.
I think first a new Big Moth electronic album with stream of consciousness vocals, we’ll see.
Apart from the songs I’m looking at the recording method, I really feel like getting back to tape which might suit a poetry album in the short term…and so it goes…

William Goodes Journal – Ian Duncan Smith and “aspiration”

British conservative MP and currently Secretary of State for Work and Pensions Iain Duncan Smith says “Aspiration, it seems, is in danger of becoming the preserve of the wealthy” ironically this is about all that i can agree with him on, although where the “aspirational class” sits and who they are in a society is not easy to see.
The erosion of the middle classes is well and truly in motion, if you are from the aspirational class your enduring belief in social mobility will be severly dented in the coming years. The other irony is that in a more equal society everyone is likely to fair better, including the “aspirational class”.
By not raising taxes for the rich and cutting welfare for the less fortunate the end result could be higher crime rates, lower educational standards and the usual suspects in the social ills catalogue.
But then i would imagine Iain Duncan Smith already knows this.