Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering

Stop paying VAT on digital sales when earnings are under £81k
You can't currently avoid it. The reason the legislation was introduced was to prevent the big-name developers from setting up shop in a low-VAT country and selling apps to citizens of EU countries that would normally be paying a much higher VAT.  You need to register for VAT and file quarterly nil-returns so that you get that money back. It's a hassle, but probably worth it just to recoup those funds.  From an article in Kotaku from late 2014: You see, in the UK we have a rather sensible exemption on VAT for   businesses that earn under £81,000 a year. This allows people to run   small businesses - like making and selling games in your spare time,   for instance - without the administrative nightmare of registering as   a business and paying VAT on sales. Unfortunately, none of the other   EU member states had an exemption like this, so when the new   legislation was being put together, there was no exemption factored   in. That means that if someone makes even £1 from selling something   digital to another person in another EU country, they now have to be   VAT registered in the UK AND they have to pay tax on that sale at   whatever rate the buyer’s country of residence has set. That could be   25% in Sweden, 21% in the Netherlands, and so on. [...] There’s one piece of good news: even though anyone who sells digital   stuff now has to be VAT-registered in the UK, they don’t actually have   to pay VAT on sales to people in the UK if they earn less than £81,000   from it. (This concession was achieved earlier this month after   extensive lobbying.) But they’ll still have to submit what’s called a   “nil-return”, which is essentially a tax return with nothing on it,   every quarter in order to use the VAT MOSS service. That’s a lot of   paperwork. Obviously Brexit may have a significant impact on all this, so the rules might change.  This is the official Google Link to how they've implemented this and for which countries it affects: https://support.google.com/googleplay/android-developer/answer/138000?hl=en  Due to VAT laws in the European Union (EU), Google is responsible for   determining, charging, and remitting VAT for all Google Play Store   digital content purchases by EU customers. Google will send VAT for EU   customers' digital content purchases to the appropriate authority. You don't need to calculate and send VAT separately for EU customers.   Even if you're not located in the EU, this change in VAT laws will   still apply.