European Union VAT and Ebook Orchard update.

European Union VAT and Ebook Orchard update.

Following discussions regarding VAT and its implications to Ebook Orchard authors it has been decided to disallow residents of the European Union (EU) to purchase ebooks on Ebook Orchard until further notice.

The reasoning is that Ebook Orchard isn’t conducting B2C activities but is instead, due to no revenue earned by Ebook Orchard on any sale, acting as a financial service for authors. As a financial service provider Ebook Orchard would be required to provide authors with the details of each EU sale as well as the VAT tax collected – relationship between Ebook Orchard and author being B2B – and the author would then be responsible for complying with the rules & regulations concerning VAT within the EU. This would place an extra burden on an author by requiring said author to register with VAT even if author had only 1 EU sale every month or 1 EU sale a year.

Disallowing residents of the EU access to ebooks won’t be a burden on ebook purchasers from the EU or Ebook Orchard authors as the majority of ebook sales will occur on the traditional retailers like B&N, Apple, Kobo, Amazon, and subscription services.

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