So it sounds like the European Union's VAT (Value Added Tax) is going to muck things up for those of us in the States that sell digital items through Etsy. While it's still a confusing mess, I don't want to have anything to do with the collection of taxes for these European countries - which varies by country, by the way. So until Etsy comes up with a solution, my Etsy shop will be on vacation.
Today, my Etsy vacation is official. I've posted this on my Etsy shop:
On December 22, 2014, Etsy released a statement notifying sellers of the European Union requirement regarding the collection of VAT (Value Added Tax) from EU buyers, effective January 1st. Until the Etsy site can facilitate the handling of this process, I am placing my shop on vacation. Unfortunately, this shuts down my Etsy store to Everyone, not just EU customers.
There is some discussion about a possible loophole, allowing sellers to bypass VAT by emailing PDF files to buyers. This may or may not be factual. That being said, here's my website: www.blueherondolls.com Check out the pattern page if interested. Sorry for any inconvenience, but I'm not inclined to get in any trouble over TAXES.
I also posted this, if someone if trying to contact me through Etsy:
My Etsy shop is on vacation until the European Union's new ruling on Value Added Tax (VAT) collection procedure is clarified here on Etsy. If you need to contact me, feel free to email me at email@example.com and I'll answer as soon as I can. Sorry for any inconvenience.
I have loved selling on Etsy. I hope they get this straightened out quickly.