I have updated yesterday’s post to explain the Byzantine reasoning why digital products are apparently not eligible for the VAT thresholds. In the meantime, Juliet has set up a protest group to try to force HMRC to take notice of the very many businesses that it will destroy. If you are affected in any way by VATMOSS, please sign up here.
There are also some guidelines as to how to best go about writing to your MP or MEP about this. This will affect all of you in the UK, because one of the effects of this will be that Amazon has to charge 20% VAT on ebooks rather than 3%. They’ll try to do that by squeezing authors and publishers, which will hurt your favorite writers, but inevitably prices will rise too. If small presses were allowed to claim VAT exemption we’d be allowed to sell you ebooks VAT-free. Having no exemption threshold means that we can’t do that.