2 December 2014

Price change and pattern platforms

You may have heard about the recent EU legislation that comes into force on January 1st, 2015 that changes the way VAT (value added tax) on digital products is charged. At the moment the VAT rate is based on where the business is located, from January 1st, 2015 the rate will be based on where the customer is located. Yep, there are 28 EU states and there will be 28 different VAT rates from then on, on top of many other changes it brings with it. Apparently the legislation was in the works for 6 years but was obviously very poorly advertised to micro businesses because the EU Commission has assumed that everyone sells digital products through a platform such as Amason / iTunes, or similar. The whole thing is a mass of contradictory notes that is painfully difficult to navigate and HMRC aren't being very helpful with clear answers. I won't go into any more detail on this, but if you'd like to read more Ysolda and Woolly Wormhead wrote extensively on this issue and how it will affect micro businesses and digital sales.



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The Price Change – From January there will be a price change on my Ravelry pattens, most accessories' patterns are priced somewhere between £2.50 and £3.00 and garments are £4.00 at the moment. My prices hadn't changed in a long long while (since 2008) as much as I'd like to keep on going as I do the change was due for some time and now seems to be as good a time as any to implement it. The price change isn't huge, but I wanted to give you a little notice before I do so in case you were planning on getting a pattern or two in the near future.

So, accessories' patterns will be £3.50
kids' patterns – £3.75
adults' garments patterns – after much consideration I decided to keep these at the same price point for now

I've no exact date this change will take place as I'll probably be taking a few days off at the beginning of January, but it should be all updated by mid month at the latest. 
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  • Ravelry – Luckily Ravelry is partnering up with Loveknitting to filter their EU pattern sales through Loveknitting, hence allowing many of us to continue sell to the EU customers. There will be changes as the process is not completely seamless. As I understand Ravelry is sorting things out on their end to make this as seamless as possible both for designers and knitters. I'm going to play this by ear and see how the cart handling works in practice but it seems that any EU customer will be redirected to Loveknitting to complete the checkout and whatever they purchase will still be saved in their library.
  • Ravelry pattern collections / bundles – there won't be a way to buy my Ravelry pattern bundles in the EU from January 1st until further notice. If you had your eye on one now would be a good time to get it, once purchased it'll stay in your library as any other pattern does. You would still be able to buy one on Patternfish!
  • Patternfish – No change, you can get both single patterns and pattern collections here. I am relieved that Patternfish is one of the few platforms that sort out VAT themselves taking a great weight off our shoulders. Patternfish have always been excellent to work with, they have a good price structure and I'm happy that I can continue on selling patterns through them.
  • Loveknitting – No change. Loveknitting is a relatively new UK based platform I started using and I find them to be excellent all around, from customer service to ease of use.
  • Craftsy – it looks like I'll be closing this one down.
  • Etsy – I'm quite likely to stop selling patterns through this one as well. I'm still waiting to see how Etsy is going to handle the change and will make the decision on whether this one will close down or not depending on how they handle VAT in the future.
I think this is it regarding the platforms.

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