Posts by Cocomero

88 posts
  • Has been part of the Envato Community for over 1 year
  • Sells items exclusively on Envato Market
Cocomero says

No problems with IRS and VAT :-P Become Elite in 2015.

88 posts
  • Has been part of the Envato Community for over 1 year
  • Sells items exclusively on Envato Market
Cocomero says

I just wonder if Envato is going to officially address our questions finally and before01.01.2015.

There is no official statement and answer to this topic. No answer to question about Instapage Most Wanted winners. No official answer to question at topic Who is the seller.

Envato staff are you still there?

88 posts
  • Has been part of the Envato Community for over 1 year
  • Sells items exclusively on Envato Market
Cocomero says

What is moss?
One-time VAT registration (“mini one-stop shop” – MOSS)

Non-EU firms supplying electronic services to consumers in the EU, can make use of a simplified procedure which allows them only to register for VAT in 1 EU country, regardless of how many other EU countries they are supplying.

That country collects and distributes the VAT on behalf of all the other countries – charged at the applicable national rate depending where the customer belongs.

Envato as Non-EU firm registers to MOSS in some selected country and transfers all VAT collected there.

88 posts
  • Has been part of the Envato Community for over 1 year
  • Sells items exclusively on Envato Market
Cocomero says


is this the same accountant that envato use?

I don’t think so :)


If you are a HC business buyer or an author, then it would matter, so I wouldn’t rule that out.

Don’t know what HC is. Maybe Hard Core?


if Envato issues invoices in our name with our company data and VAT details and regards buyers VAT# (UID) for Reverse Charge (VAT less) transactions
  • we have to provide every single buyers VAT# (UID) on our “Zusammenfassende Meldung” for the finance?
  • we got all the information to proof validity of VAT# and Company information?
lg aus Wien
mac

no, we only have to proof Envato is taking care of the VAT. I don’t know which VAT ID is on the buyers invoice.

My accountant sad I don’t have to do anything else as long Envato will handle the VAT. Otherwise it would be a complete mess

I think that depends from country to country. In PL if one is direct seller than even if Envato collect and pays VAT to MOSS for B2C EU transactions it’s still required to register all transactions (B2B) and issue invoice with VAT 0.

88 posts
  • Has been part of the Envato Community for over 1 year
  • Sells items exclusively on Envato Market
Cocomero says


If Envato handles the VAT they don’t need your VAT number on the invoice, correct? Nothing to worry about just sit back and let them handle the VAT. Nothing changes our end. We won’t see any VAT related information. (correct me if I’m wrong)

it appears to be so, but the details are fuzzy. You can’t guarantee anything at this point. For example in his most recent blog post, Collis talked about giving to authors some data about the buyer. Is not clear what data he is talking about but rest assure that they don’t start to reveal buyer info after all these years if they don’t need to give author data to the buyers also.

http://marketblog.envato.com/general/updates-statements-handling-fees-business-model/

So no one can correct you if you are wrong or not because we don’t have the full picture yet.

For example is not clear if this will start from 1 January 2015 or later next year.

This is the main problem that details are unclear and fuzzy.

I don’t want to write about past. I don’t have a problem with past as I didn’t sell anything on Envato yet (and now I’m pretty glad of that).

However what about changes since 01.01.2015.

We have two leading platforms selling mobile apps: Apple AppStore and Google Play.

They have totally different business model however rules for both companies are clear and simple.

1. Apple: AppStore is reseller. You sell licenses to Apple. Apple provides digital service based on your app on their platform. Usually it means that you don’t have to register as business, you don’t need to know customer data, you don’t need to invoice customers.

As you receive money from Apple you should issue invoice to Apple. As Apple is registered in Luxembourg developer (it doesn’t matter if individual or business!) has to register to VAT-UE. VAT on invoice is going o be 0, though this registration is required to get VAT ID.

So, no VAT tax, no company, income tax only.

2. Google Play: is a kind of platform that Google provides for developers. They are direct sellers. They purchase services from Google and sell digital products directly to customers. It’s usually required to register as company, register to VAT as company, handle VAT from customers (however Google will collect this vat and send to developers or MOSS), developer has to register each transaction on daily basis (Google provides detailed information on each transaction on Google Checkout) and should issue invoice to each customer. Developers have to pay vat and income tax counting from the day of sale (even if has no money yet).

Everything is described here

Envato is trying to mix these two models.

They want Authors to become direct sellers. They want Authors to take all risk, to issue invoices, etc.

Unfortunately Envato doesn’t provide detailed data on each transaction. They want to decide on prices, returns etc.

So, they would like to act as reseller and pretend that they are not.

This is why we all have problem with understanding this.

88 posts
  • Has been part of the Envato Community for over 1 year
  • Sells items exclusively on Envato Market
Cocomero says


Author is company from Germany. Customer is company also from Germany. Both are active VAT payers and have valid VAT ID. How is going Author from Germany get VAT from this kind of sale?
This is a typical B2B transaction that requires no VAT (with current and upcoming (2015) EU VAT rules)
No matter if the author is a self employed seller or sells via a EU-/Non-EU online marketplace.

Have you got a company? Are you registered to VAT? If so, I suggest to go to your accountant immediately. As you apparently see no difference in VAT on B2B sales between two EU countries and within the same EU country.

88 posts
  • Has been part of the Envato Community for over 1 year
  • Sells items exclusively on Envato Market
Cocomero says
http://marketblog.envato.com/news/2015-eu-vat-changes/

“EU buyers who provide a valid EU VAT number as well as buyers who confirm their country is not located in the EU will not be charged VAT on Envato Market.”

ORLY? Then take a look at this case:

Author is company from Germany. Customer is company also from Germany. Both are active VAT payers and have valid VAT ID.

How is going Author from Germany get VAT from this kind of sale?

Pathetic….

88 posts
  • Has been part of the Envato Community for over 1 year
  • Sells items exclusively on Envato Market
Cocomero says

So the short answer authors will not invoice normal users, but may require to invoice business buyers that do not have “Valid VAT number”.. but how can a buyer be considered business if he does not have “Valid VAT number”?

LOL this is brilliant question! :D You made my day!

In PL business users have VAT ID called NIP which is valid for domestic sales. While to handle EU transactions business has to request and register to VAT EU.

So, these customers are business customers indeed. However when you check their status in VIES it will return false.

Another problem is that for domestic sales for example PL -> PL, GER -> GER both retail and business customers need to have VAT charged on invoice.

I don’t believe that Envato is going to take care of this properly since 1.1.2015 :-)

88 posts
  • Has been part of the Envato Community for over 1 year
  • Sells items exclusively on Envato Market
Cocomero says


While you are “active VAT taxpayer” when you sell something to any customer you have to issue invoice. The only difference is that for customer with active and verified VAT ID you invoice NET sales with VAT = 0 or without column for VAT at all. However invoice is required.
As far as I know an official Invoice should always contain VAT, and the business owner with valid VAT ID can collect the VAT later. correct me if I am wrong?

You are wrong. VAT is 0 on export sales. So if you are from Germany and sell theme to some business customer from UK then it’s export from GER to UK and no VAT on your invoice.

However invoice is still required.

88 posts
  • Has been part of the Envato Community for over 1 year
  • Sells items exclusively on Envato Market
Cocomero says



...for sales made to non-business buyers…
So we have to invoice business users?

From same article:

For EU business buyers, we won’t add VAT if you simply provide evidence of your business (such as a valid EU VAT number).

This is not an answer! It doesn’t mean that “direct seller” is not required to invoice, track and report such transactions.

While you are “active VAT taxpayer” when you sell something to any customer you have to issue invoice. The only difference is that for customer with active and verified VAT ID you invoice NET sales with VAT = 0 or without column for VAT at all. However invoice is required.

For Poland it’s described here (in polish). For Germany it’s described here (in english).

It’s also required to report all these transaction in separate column in VAT declaration monthly or quarterly.

After reading entries such as KingDog’s I’m affraid that you guys at Envato have absolutely freaking NO IDEA about taxes in EU and business rules in EU at all. This is so amateurish :(

(and now you can delete my comment I don’t care anymore)

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