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User Name Thread Name Subject Posted
Howard Jones Brexit and music (141* d) RE: Brexit and music 16 Oct 19

The issue over internet trading had been almost sorted out. A few years ago the rules on VAT were changed so that it was charged in the customer's country rather than the vendor's. Whereas in the UK there is a minimum turnover threshold below which you don't pay VAT, that didn't apply to digital sales, so if someone in France bought a digital album from a musician in the UK, the seller would have to add French VAT. A complicated system was set up called VATMOSS so that this could all be dealt with through HMRC, rather than having to register and submit forms in 27 countries, which still wasn't great but was the least bad solution. How VATMOSS will work after Brexit is still probably unclear.

Fortunately so far as most musicians are concerned Bandcamp, CD Baby and the other digital platforms agreed to deal with all this so musicians don't have to handle masses of paperwork for the sake of a few quid in tax. However if you sell digital services directly eg online lessons then it may still be a problem, and one which I can only see getting worse unless something is resolved soon.

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