Blog


Designers

Published on November 26th, 2014 | by Faith

17 comments

LoveKnitting & Ravelry Team Up for EU Digital Pattern Sales

You may have seen the exciting news today from Casey over at Ravelry that we’re working with him and the team to give Ravelry’s independent designers the option to sell their knitting and crochet patterns through LoveKnitting to customers in the European Union (EU) come the new year.

Ravelry is a huge online community for all lovers of yarn arts – knitting, crochet, weaving, felting, dying – which lets users collect project inspiration, share their own projects, buy and sell patterns and much, much more.

Click here to read Casey’s announcement. 

Why, you might ask?

From January 1st 2015, changes are coming to the way VAT is collected for digital services sold to EU countries. While VAT is currently calculated by the supplier’s location and only applies to businesses over a certain income threshold, the rules are changing so that VAT must be collected for any digital service sales in the EU at the VAT rate of the country in which the customer makes the purchase.

These changes only apply to direct to consumer sales. So while designers selling their patterns directly to EU customers through Ravelry would be responsible for having to handle VAT for all EU sales, a retailer like LoveKnitting is responsible for the VAT collection because it makes the transaction with the customer on behalf of the designer.

Click here to read more about the VAT changes.

What does it mean for independent designers?

It means that from January 1st, if you sell through Ravelry, you will have the option to upload and sell your patterns on LoveKnitting to EU customers. This means you avoid the hassle of becoming VAT registered and leave the complication of handling EU VAT to LoveKnitting. Please note, LoveKnitting also loves crochet patterns!

How will VAT collection and fees work?

LoveKnitting will collect VAT on sales on your behalf from the price of the pattern. The existing commission free period will be extended until June 2015 and after that commission fees will be 20% + 25p per transaction. You don’t need to be VAT registered and you don’t have to worry about time-consuming VAT registration or returns.

The eventual fees will be used to cover the cost of VAT handling, payment processing costs and the proactive marketing of our independent designer patterns to a large email subscriber base, over 176,000 Facebook and 6000 Twitter followers.

What does it mean for customers?

We’re working on changes that mean Ravelry users in the EU will have a lovely, seamless experience that gives them the best of Ravelry and the opportunity to still buy the amazing selection of Ravelry patterns they’ve come to love! LoveKnitting customers will simply have even more wonderful independent designer knitting and crochet patterns to choose from come January!

See our current Independent Designer collection.

We are working (very!) hard to make it the very best experience for designers and customers that it can be. More details to follow – so watch this space! If you have any questions, please use the comment box below.

Click to sign up for LoveKnitting Designers and read our FAQs or browse the Ravelry Patterns.


About the Author

Faith has just recently launched herself into the wonderful world of knitting and is excited by the possibilities! She also loves baking, Italy and all types of dogs (but is in the midst of a pug obsession)!


Last updated: July 2nd, 2015.

17 Responses to LoveKnitting & Ravelry Team Up for EU Digital Pattern Sales

  1. Christine Cahill says:

    I am not a pattern designer, but I am so grateful that you at LoveKnitting are providing this service to EU pattern sellers. LoveKnitting will now be one of my go-to yarn sources!

  2. Tumpedduck says:

    This is great news, I look forward to hearing more as things flesh out. I would like a small clarification?

    You said VAT would be collected from the price of the pattern. Does that mean that it will be deducted from the list price or that the purchase price will be listed as pattern price+appropriate VAT?

    • Faith says:

      Hello!

      Thanks for your comment.

      The purchase price that customers see on LoveKnitting will always include VAT. How customers see pattern prices on Ravelry is still being worked out. We’re working hard to make it as easy as possible for designers on Ravelry to set their prices for patterns that will be sold on LoveKnitting. We will let you know as soon as these details are worked out!

      All the best,

      Faith

  3. Janelle says:

    Thank You for help the designers, so us buyers can keep buying their patterns and they can keep selling their patterns.

  4. Thanks for this. I’m looking forward to see how it works!

  5. Thank you! Am so happy you guys have made life easier for us!

  6. jenny says:

    Thank you so much for caring and understanding the needs of independent pattern sellers, and working so effectively with Ravelry! another example of the excellent customer service you provide, I am half way to registering as a designer with you as we speak xx

  7. Kimberley says:

    As a new designer I want to say Thank You to the LoveKnitting team for working with Casey and the rest of the Ravelry team to come up with this solution! And Thank You for taking us in!

    As a new designer these tax changes in the EU could have ruined my new business. Now I can continue to move forward without the worry of losing potential customers due to the hassle of VAT registrations in multiple countries or losing more of my profit to a MOSS.

  8. Riin Gill says:

    Thanks for doing this. I’m still unclear on one thing though. I’m a pattern designer in the US. Does this affect me or no?

    • Kirstyn Langford says:

      Hi Riin,

      Apologies for the delay in getting back to you. Yes, the EU VAT rules are changing to become based on the location of the customer from January 1st 2015. VAT will need to be collected on any cross-border digital pattern sales made in the EU, regardless of the place of supply. If you are selling through LoveKnitting, we will handle VAT on your behalf.

      All the best,

      Kirstyn

  9. Dagmar says:

    Thank you for providing this service. It is much appreciated.

  10. Brenda C. says:

    Just want to add my thanks for helping out the designers this way. I recently joined your site, and I’m so relieved I won’t need to laboriously upload all my designs individually to your site.
    Thanks!!

  11. Helen says:

    3 cheers for Love Knitting!! This could so easily have resulted in designers reluctantly but necessarily setting exclusions for the EU. For example, a ‘not available to EU customers’ notice on every pattern page if they were too small a business to be able to service these changes themselves. In a way, I hope this does happen (in other areas of digital sales, of course!) so that the treasury income will fall and they’ll see just how bad a decision it is and reverse it. If they want to increase the treasury coffers, this isn’t the way to do it. Go after Amazon, Starbucks, Google etc and make them pay the tax they’re avoiding instead of targeting the low hanging fruit! Rant rant, rant rant rant, rant, rant rant rant, George Osborne rant rant, bloody rant!!
    Yours,
    Helen.

  12. John says:

    Too bad for Ravelry to team up with a poor customer service company like Loveknitting,com…just wait until you have a problem you will find out for yourself how they ignore emails, delay refunds and their prepaid return labels are only First Class mail so anything bigger than that or heavier than 12oz will not be accepted by the USPS and they do not reimburse even though they promise to do.
    Find another supplier.

  13. Louise Lloyd says:

    I hope you can help me! I need approximately three (3) skeins of Caron Wintuk off white # 3002 on order to finish my project. I appreciate any help, thank you.

    Louise Lloyd

  14. Louise Lloyd says:

    Please help! I need three skeins of Caron Wintuk off white #3002 to complete my project.

    Any help is greatly appreciated.

    Thank you, Louise

  15. carol.smallman@bigpond.com says:

    I am missing a pattern called Sand Castle Jumper. The phamplet was Craftworks BessieBelle by Ravelry.
    I was wondering if you could locate it for me please

    Carol Smallman

Back to Top ↑