One solution I have decided to work with is to stop supplying digitally to the EU (but continue to the UK & outside the EU). Instead, to my EU customers, I will be sending a pdf on a physical CD in the post to them. This, I believe, under the VAT regulations classifies as a physical, not digital product and therefore I’m still allowed the VAT threshold. My EU customers get a small postage charge (probably less than the VAT would have been) and my UK customers don’t have to stomach a 20% price increase.

Just a thought that may work for those others in the same situation (I know currently my webshop provider – Volusion – CANNOT cope with the proposed changes, and I also use Stripe for card payments, so would have to use yet another third party – all of which cuts into the minute profits I already make).