There is new EU VAT legislation coming into effect on January 1, 2015. There are many more details than I can give here, but this is the nutshell:
Starting January 1st, countries of the EU will require sellers of digital products to collect and pay taxes on the digital items we sell.
Every country has a different tax rate. I hear these rates are between 3-27%.
Yes, this applies to those of us in the US as well, even though we're not in the EU.
We're also supposed to collect certain information about the customer so that we the sellers can prove that the customers live where they say they live (nightmare & possibly in violation of some country's privacy laws) And we're supposed to store this info (securely!) for 10 years.
The idea behind the new rule was to keep companies like Amazon and Apple from setting up shop in Luxembourg (low taxes there) and avoiding taxes in the other EU nations (high taxes there). Unfortunately, it has the potential to squeeze microbusinesses like mine to death.
There is no minimum threshold for revenue. Every seller, hobbyist or professional, must comply.
They're planning to do the same on physical goods in 2016. If we can't stop this now, this time next year we will all be in a lot more pain.
Here are links for more info:
People in the UK who are trying to cull all the info and effect change before it's too late:
A message from the US government, telling us we have to collect/pay the taxes:
A change.org petition asking to suspend the legislation (US residents can sign too):
An article/audio on how the EU plans to collect from Americans who don't pay:
The Facebook group I'm a part of that is discussing this whole situation, organizing Twitter storms, etc.: