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.
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.
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!
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.
Last updated: July 2nd, 2015.