Good news Etsyians. . .Etsy is finally up to code and legal . .only 7 months AFTER the law went into effect

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Hi there, We’re excited to announce that we have implemented the site updates necessary for Etsy to begin collecting value-added tax on digital items from buyers in the European Union. As many sellers of digital items know, the European Union implemented new rules on value-added tax (VAT) for digital items earlier this year. The rules, which took effect on January 1, 2015, state that VAT on digital items delivered via automatic download will be taxed based on the country where the buyer is located, not where the seller is located. The rules apply to any shop selling digital items that can be automatically downloaded at the time of purchase to buyers in the EU, no matter where the shop is located. The rules do not apply to items delivered by email. To be clear, EU buyers – not Etsy or Etsy sellers – will be paying VAT as part of their total purchase price. In February, we announced that Etsy is responsible for collecting VAT on digital items delivered by automatic download and remitting it to the appropriate tax authorities. Since then, we’ve been working on the site updates necessary to begin the collection process. Those updates are now live on Etsy. Please visit the Seller Handbook article below for details on the collection process. Get More Information