Clint (congrats on the baby by the way) and everyone,
As I understand it, you are saying that UK tax rules have changed and
that some sales to the US are now subject to 17.5% VAT. This means
that by UK law you will have to levy this tax on each turn (Just like
US states sales tax). If that is the case then there is no choice but
to up the price.
Whilst I can understand that HM Customs and Excise might argue that
you have to take the US turnover into account for the threshhold and
then levy VAT on the UK portion I am very suprised that they want you
to levy VAT on sales to the US. It would be useful to know upon what
basis they are arguing this as it seems to fly in the face of stated
Government policy. As an exporter of digital product to the US
without paying VAT I am interested to know what they are about.
Perhaps Mike (Barber) could get some free (non insured) advice for
you? If it affects my business then I will certainly be checking with
our accountants and would be happy to get their opinion anyway. Get
in touch if you think I might be able to help even if it is to share
a healthy hatred of taxman.
God's righteous punishment for that Automagic wickedness! (Sorry,
couldn't resist it).
Regards
Chris Courtiour