European Union VAT and my bookstore

For the last couple years I’ve been fairly successful selling my self-published books from my own store at tiltedwindmillpress.com. Recent legislation in the European Union changes this.

The EU has this thing called VAT, or “value-added tax.” It’s a tax that requires all sorts of paperwork. It requires charging tax based on the buyer’s location. And it applies to ebooks as of 2015.

Legally, if I’m doing business in the EU, I’ll need to collect VAT and remit it to each country in the European Union.

I don’t make enough on EU sales to cover the paperwork and time.

I have little choice but to stop doing direct business in the EU.

I want readers in the EU to be able to buy my books, but I won’t be able to sell to them directly. I’ll need to go through retailers that handle VAT for me.

I have the following requirements for a retailer.

  1. Must let me sell multiple formats (pdf, epub, mobi) in a single purchase.
  2. Must handle VAT
  3. Must support DRM-free
  4. Must not hold onto payments for “very long” (whatever that means)
  5. Must handle highly formatted documents
  6. Must add VAT to the retail price

Many people have suggested Smashwords, but they fail #4 and #5. Smashwords pays quarterly. They also only accept epub and Microsoft Word files, and they produce PDF, Kindle, RTF, and all the other formats from those. I want buyers to get a PDF that matches the print edition, so that they get interesting things like indexes. Also, Smashwords does not support tables. (I don’t blame them. Tables are evil.)

So far, it looks like Gumroad is the winner. Gumroad will let me sell any file format I want, exactly as I upload it. They will handle VAT for me, by adding the VAT to the price. And they pay every other week, by direct deposit. Annoyingly, you must have a Gumroad account to browse the catalog. I have Tarsnap Mastery on Gumroad now. Other titles will follow.

As far as other retailers go: retailers like Amazon and iBooks are handling VAT by making ebook prices inclusive of VAT. This means I’ll need to raise my EU prices to compensate.

Once I have everything in place, I’ll implement an IP-based block against sales to EU countries.

I really, really dislike this, but EU law leaves me no choice. I’m not comfortable blatantly ignoring tax law. I don’t think the EU could really do anything to me, but I wouldn’t be shocked if a future EU-US treaty were to suddenly make me responsible for years of back VAT. And I would like the option of visiting the EU in the future, rather than risk trouble because I’m evading taxes.

Of all the book buyers in the world, my readers are the most likely to be able to evade IP-based blocks. I’ve written one of many books on how to do that. An IP-based block is reasonable due diligence on my part, and I can stand up in court and say that. If you choose to evade that block, that’s an action on your part and, legally, not my responsibility. I have no other technological means to block you, anyway.

“But you’re small!” Yes, I am. But I don’t intend to stay small. I’m working very hard at getting bigger.

If you’re in the EU, and you’ve been waiting to buy some of my Mastery books, I suggest you stop waiting now.

If you’re in the EU and want to buy books directly from me, I suggest fixing your tax laws so that doing business there is worthwhile.

Rest assured, I really dislike taking these steps. Spend some time reading about microbusinesses and the EU VAT. Many people like me who happen to be based in the EU are being completely forced out of business. If I lived in the EU, I’d probably have to leave.

I’m also pondering some sort of sponsorship plan, where people could send me money to support my work. Every so often, I’d send them an ebook as thanks. This wouldn’t be a sale–sponsorships would be a little more expensive than just buying a book, otherwise it would be a thinly disguised sale and breach the law. I’m still debating this, though, as I’m not sure there’s enough interest.

(UPDATE 12:30 PM)

I should say, I have no objection to paying taxes. Taxes are the price we pay for civilization, and while you might argue that there’s better ways to do it, taxes are how we do it today.

I don’t even object to paying a European tax on European customers. I’d just pass it through to my customers, after all.

But to comply with US taxes, I keep spreadsheets of sales and expenses. At the end of the year, I bundle them up with a few 1099s and related docs and ship them to my accountant. She sends me a nice letter saying “write these checks and mail these forms.”

If I could do this and comply with the EU VAT, I would do so.

But I can’t. VAT compliance requirements are a nightmare for a microbusiness. VAT compliance requires multiple sources of information from multiple providers. I don’t even take credit cards, because the compliance requirements are too high. There’s zero chance I’m going to be capable of VAT compliance!

n4sa Print Sneaking Out

The print version of Networking for Systems Administrators is starting to appear for purchase on Amazon’s web site.

  • n4sa US
  • n4sa UK

    Other Amazon sites should appear shortly.

    Amazon has not yet performed their usual discounting. Usually, if you order a brand-new book they’ll retroactively drop the price. But not always. I’d tell you to add it to your cart today and check tomorrow.

    Vendors like Barnes & Noble and Powells will pick it up in a week or two.

  • Testing Reddit Advertising for Nonfiction

    The biggest boost in book sales I’ve ever seen is from when the review of FMSE went on Reddit’s sysadmin board.

    Reddit has a self-serve advertising platform, with a minimum buy of $5 for 5000 impressions. I’m willing to risk $5 on an experiment.

    So I now have a sponsored link on Reddit, pimping Sudo Mastery. I would post a link, except you lot would click through and mess up my impressions count. If you’re reading my blog, I’m going to assume you are aware that the book exists. If you have not bought the book, me shouting BUY MY BOOK will not change your mind.

    I spent $13.75 to run this ad from 3 February to 1 March on /r/linux.

    I then put $7.14 to run this ad from 3 February to 05 March on /r/bsd.

    I investigated /r/sysadmin, but they didn’t have advertising space available.

    So far this morning, I have 137 impressions and 2 clicks. But it’s the first day.

    To break even on non-time expenses alone, I need to make $21. That’s not a huge hurdle. I did spend a couple hours on this, but most of that was figuring out how the advertising platform worked. (Hint: while the self-serv advertising platform defaults to two-day campaigns, running campaigns over a month or so gives you much more chance your campaign will be accepted. And I’m told that repeated exposure to an ad, over a long period, is more effective than a short sharp insistence.)

    I am curious any of my readers who are regular Redditors happen to see the ad in the course of their normal day, however.

    “Networking for Systems Administrators” on Kindle

    After more time than I expected, Networking for Systems Administrators is available on Kindle. I’ve uploaded it to Nook and Kobo as well, but they haven’t made it available yet.

    The Amazon links on the book page are affiliate links. If you buy through them, I make a little extra.

    I’m working on the print layout today. Print will be available ASAP.

    Once I have an approved print proof, I’ll make the book available on tiltedwindmillpress.com. It’ll be another week or so, probably.

    Thanks to everyone who helped to make this a better book.

    And I’d especially appreciate any reviews people might have to offer. I didn’t make the ebook available before release to see if it affected my visibility on Amazon. (Rumor claims that initial sales velocity impacts a book’s visibility.) According to those same rumor mills, the number of purchaser reviews in the first week disproportionately impact ongoing visibility.

    Word doc placed in Indesign gets numbered headings

    This has bit me more than once, and according to Google it affects nobody else on the whole Internet. Do I feel special or what?

    I write books in Microsoft Word, using Styles. Paragraph and character styles are essential for producing electronic and print books.

    At random times, when I import a Word doc into Indesign for print layout, numbers appear before the headings. These numbers do not appear in the Word document. Resolving this problem drives me near to madness.

    InDesign and Word both have features to number chapters and sections. The “place document” process somehow tickles one of them just right to activate this behavior.

    To get rid of it:

  • Go into the Word doc.
  • Modify the problem Style.
  • Select Format
  • Go to Numbering
  • Select a numbering scheme, and immediately select “no numbering.”
  • Save the doc

    You can now import without numbered headings mysteriously appearing.

    Recording this for my future reference will hopefully vaccinate me against ever having this problem again. That’s what disaster preparations are for, after all!

  • “Tarsnap Mastery” pre-pub reviewers wanted

    The first draft of “Tarsnap Mastery” is ready for pre-pub review.

    Colin has reviewed the manuscript, so I’m fairly sure that the technical stuff is correct. But Colin knows Tarsnap very well, so he read the book already understanding what I’m trying to teach.

    And in aggregate, y’all use Tarsnap much more than I possibly could. There’s thousands of you. You’ve probably figured out ways to abuse the service that I would have never thought of.

    If you’re interested in doing a pre-pub review, send me an email with the subject “Tarsnap pre-pub review.” Please give me a sentence or two saying:

  • how experienced you are as a sysadmin
  • how experienced you are at Tarsnap

    I can’t take everyone who volunteers, but I want to get a fair balance between different levels of sysadmin and Tarsnap experience.

    The book draft PDF is 16MB. Send your message from an email address that can accept a file that large. If the email bounces, I’ll assume that you didn’t read this far in the instructions, and hence don’t really want to review.

    Please send any comments in plain text. I don’t look at comments until the due date, so one big response is fine.

    I’ll need any comments back by 9 February 2015.

    If you want more detail on pre-pub reviews, look at my web site.

  • Jan 2015 Status & Next Projects

    Welcome to 21 January 2015. Here’s the news.

    I finished the first draft of Tarsnap Mastery yesterday. Today I went through it one more time, then shipped it off to Colin Percival for his comments on the last few chapters. Once I have his corrections, I’ll solicit reviewers.

    Networking for Systems Administrators is at the copyeditor. It’s due back Friday. I expected this book to be pretty easy, but the tech reviewers savaged it. The end result will be a much better book, but it still wasn’t much fun and took longer to repair than I expected. With any luck, though, I’ll be able to get the electronic version out before the end of January and print in mid-February.

    These two books are not available for pre-order through the Tilted Windmill Press web site. Books that I offer direct pre-orders on have done much more poorly than books without direct pre-orders. (Part of that might be topics, of course.) Other authors tell me that Amazon uses a book’s initial sales velocity to compute a book visibility to other buyers. More than 90% of my TWP book sales come from Amazon, so I care what happens on that platform.

    The sequel to Immortal Clay is rolling along.

    Now that Tarsnap Mastery and Networking for System Administrators are in a lull, I’ve started seriously pulling material together and filling in the outlines for my next FreeBSD Mastery books:

  • Jails (#fmjail)
  • ZFS (#fmzfs)
  • Specialty Filesystems (#fmspf, because #fmsf is taken)

    If you watched my most recent BSDNow interview, this is not a surprise.

    The books will assume you know what’s in FM: Storage Essentials, and there is a certain amount of interconnection between all three. For example, to use jails you should know about devfs and unionfs. The Jails book will include the incantations to perform the devfs and unionfs tasks needed for jails, but the explanations for them will be in the Specialty Filesystems book. Similarly, the Jails book will have ZFS rituals in it, but the ZFS book will have the knowledge behind those rituals.

    So, if you know some of these systems but not all you only need buy exactly what you need.

    I might split the Specialty Filesystems book into two parts, one for local filesystems and one for networked filesystems, depending on how long the book gets and the final content. My goal for these books is to make them about 30,000-40,000 words.[1] FMSE was 45,000 words, and N4SA is about that long. The sudo and Tarsnap books are closer to 30K, while SSH is right around 35K.

    I expect that once I finish them, I’ll have a bundle at Tilted Windmill Press much like the existing Security Bundle.

    When will these be finished? I really want to take the finished print books to BSDCan in June.

    [1] Why restrict book length? While the various ebook platforms do not restrict how long books can be, they do restrict how much I can charge for them. Most traditional publishers do not have that restriction. I must stagger roughly around that fuzzy intersection between “give good value,” “include what the reader needs,” and “can’t pay the mortgage.”

    Note that the on-demand printers do limit the size of print books. The bindings at the larger size books are not great. I refuse to release shoddy print books.