UPDATE: February 17, 2015: Etsy sent me an email with additional details on how the VAT will be handled. I hope it's good so I can start back selling to the peeps in Europe.
I just got an email about VAT being placed on digital downloads on Etsy. Ummmm, I don't know a thing about VAT. I can barely keep up with tax laws in America!
I'm not sure who is supposed to be handling the VAT after reading as much as I could. It seems as though this VAT collection is Etsy's responsibility, not individual sellers, but I'm not sure. So, since I'm not sure how this is going to work, beginning January 1, 2015, I won't be allowing EUR payments through my payment processor. I really don't want to stop allowing payments from EUR, but it appears I have no choice right now. I just can't handle trying to learn all the VAT guidelines within Europe.
What a way to start a New Year. I will miss meeting people outside of America. Uggghhh! So disappointing.