MarketPress and restricting digital sales by target country

Hi Guys

I hope I'm not the bearer of bad news re: MarketPress and digital products sold from an EU country.

Effective 1st January new legislation requires all sellers of digital products to consumers within the EU to have to charge the Value Added Tax (VAT) at the prevalent rate of the target country (where the purchaser is domiciled).

So this means MarketPress would need to support multiple rates of VAT (and all other e-commerce software too). This is becoming a huge issue here in the UK amongst SMEs with MPs lobbying the Govt. to not implement the legislation pending a review.

Anyway, it gets worse since even if the business located within the EU is not required to register for VAT because their turnover is below their countries registration threshold, they HAVE to register for VAT if they sell digital products to consumers within other EU countries.

So, the SPECIFIC question I have relates to a client who cannot afford the additional accounting procedures to comply with this legislation. He simply wants me to STOP all sales of his digital products to EU countries.

I understand this is possible with physical products within MarketPress ... can I achieve this with digital products?

Many thanks,

Martin

For anyone reading this, who are interested in this new legislation, here are some links which may help:

VAT on Digital Services within the EU

How #VATMOSS is the end of small enterprise in Britain – and how we can change it

New EU VAT rules change the game for digital businesses