Photo: Press
Bandcamp have spoken out to explain the rules surrounding the upcoming changes to tax for digital music downloads - revealing that artists will not have to register for VAT after all.
A large number of independent artists and labels, as well as unsigned bands, had taken online over the last week to protest a ruling that suggested that they would have to register for VAT when new legislation comes in to force on 1 January, 2015. This would apply to bands that had sold only one download.
The time and expense involved led to many suggesting that they would be removing their music from Bandcamp, but now they've issued a statement to explain where bands would stand - saying that they will handle the VAT side of things for acts.
"If you've seen the recent news of changes to EU tax law, you may be wondering how this affects you as an artist or label selling on Bandcamp," they said. "The good news is that for digital sales, there is no need for you to register for VAT, submit quarterly reports, and so on. We will take care of all of that for you.
"If you happened to see our earlier help item about this, we planned to roll out a temporary solution where artists submitted the tax themselves. We've decided to accelerate the changes to our system such that the interim step is unnecessary."
The new legislation hopes to raise an extra £300million annually in taxation and tackle the criticism levelled against the likes of Amazon and Apple who have faced accusationed of tax avoidance where moneys were not paid were downloads were purchased from.
"The government will change the taxation rules of intra-EU business to consumer supplies of telecommunications, broadcasting and e-services," said Chanceller George Osbourne in a statement earlier this year. "From January 1 2015, these services will be taxed in the member state in which the consumer is located, ensuring these are taxed fairly and helping to protect revenue."
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