When I said “we shouldn’t focus on the ‘commission’ part of the argument”, I didn’t really understand VAT completely, and was thinking about how this affected U.S. authors only. But after reading some recent posts, I really feel bad for the upcoming ramifications this is going to have on European authors, as it seems way worse than what U.S. authors are going to have to deal with.
Apparently the terms of service has always said it’s not a commission system and we are the sellers.
When I search my email inbox for the words “envato commission”, dozens of emails say otherwise. But there’s no point in arguing this in my opinion. Because it detracts from the more pertinent issue, which is the fact that no one here is on board with the idea of reporting income that we were never actually paid.
I’m wondering if the “fee” structure was launched this summer without consideration of the new tax reporting policy. And if so, is there any reason why the structure can’t just be changed to put the entire fee on the seller? Wouldn’t that pretty much solve the problem?
This sounds familiar: http://www.microstockdiaries.com/shutterstock-and-tax.html
The difference is people there seem to be opposed to the reporting itself. Whereas here, we have not objection to the idea of reporting our income. What we object to is the fact that the reports won’t be matching our bank account statements.
The solution for this is easy:
- Send all authors 80% on the 15th (or whatever the current author rate is + 10%)
- Require that all authors repay 10% within 3 days
- If the 10% isn’t repaid in time, the funds are automatically seized from the account’s current balance, and the account gets disabled.
The reason why this works is that 99% of all authors will have at least 10% of their previous month’s earnings in their account balance on the 18th of the following month. So it will be very easy for Envato to recoup the 10% if for some reason it isn’t paid back.
Congratulations Mudi Very impressive considering most of the sales are from GraphicRiver!
I think someone mentioned this, but “Express WordPress Installation” could easily apply to WordPress and non-WordPress plugins, as after reading the FAQ’s, it’s basically the same process/work involved.
It’s only not working for me in the “US Tax” thread. I can post a reply on all other threads. Conspiracy?
If someone could answer the following question I’d be very grateful:
Envato’s official policy is:
One account, one “owner” of that account. And any partnerships/collaborations are then handled/organized outside the Envato system.
The “50andJack” collaboration I’m a part of has always been a 50/50 split. “Jack” is in the US, and “50” (50_tons) lives in Romania.
In this scenario, it would be insane if Envato reported 100% or the earnings as income “Jack” earned. As “Jack” would then have to pretend “50%” of the earnings were a “business expense”. I was never paid 100%, and I never personally paid “50_tons” 50% either.
In this scenario, can we just say “50_tons” is the “owner” of the account, and that the “owner” is not a US resident? I really need to know the answer to this, because I don’t want to have any problems for not following the rules.
I’ve accepted the fact that I’m going to probably have to claim 82.5% of total sales from my personal CodingJack account. Because claiming “12.5%” as a mysterious “business expense” is only going trigger the risk of an audit. However, I’d really prefer not to have to pretend that I was actually paid 100% of my “50andJack” collaboration, because that’s just simply not true.
Going forward, the following changes seem necessary:
- Make “one account, one owner” much more clear with regards to tax responsibilities.
- Eliminate split withdrawals, because with the new system, it’s a huge mess.
- Only one withdrawal should be able to be made, and then the “account owner” will be responsible for claiming 100% of the earnings for their personal taxes.
- The “owner” of the account would then be responsible for paying out the people they “collaborated” with.
- The “owner” of the account would then be responsible for claiming any payments they made to others outside the Envato system as a “business expense”.
Thanks for your reply Jordan
“or the providers engagement with the site not high enough to justify keeping them on-board.”
That was probably it, as I didn’t frequent the site very often. I’m pretty sure the service was good, but I think maybe I was just competing with other freelancers who were willing to offer lower prices.
I’m currently just referring people to the site when I’m not able to take on a personal freelance job, so not that much traffic. But I was already doing this before being accepted as an affiliate, as I’m always happy to keep things “in the family”.
And thanks for the consideration for reinstatement. If that happens, I’ll try and create a better service and give it another go. Either way, I appreciate the effort, and wish everyone at Envato Studio the best