Then price of theme for companies should be $45.40, not $50.
i think there’s an EU law that says that all non-EU companies that provide digital goods to EU customers should charge VAT depending on the country where the customer is located. Then envato would have to pay the vat to that country.
As I know digital good is a service and if company is registered in Australia then service is executed in Australia, so buyer pays their value added tax.
OK, but still I don’t understand why Envato doesn’t add 10% VAT to theme price.
If they sell themes for non-business customers then they should collect 10% VAT – http://world.tax-rates.org/australia/sales-tax
I know how VAT system works
The point is if you are buying a theme on Themeforest, then who is a seller? Envato or me?
If Envato is an Australian-based company then they should add VAT (10%) to all prices – http://world.tax-rates.org/australia/sales-tax
Who should collect VAT here? Envato (10% VAT) or authors/sellers?
You are responsible for paying all fees and taxes (including withholding tax), associated with your use of the Sites wherever levied (including any goods and services or value added taxes, which will be added to amounts billed to you, if applicable).
Right now I pay 20% CIT and 35% of national insurance. So as I understand I have to pay VAT (25%) too?
Great! How about to make FAQ tab visible for buyers only? You know why 
WPScientist said
I have an idea.Someone mentioned that his theme got pirated with only 3 sales. So one of those 3 is a pirate, with a bit of research Envato can figure out who it is and ban his account.
Now, listen up before you say “Well he’s just gonna make a new account”. Envato has info about his method of payment (paypal, moneybookers, credit card) so we can find out who he is.
First offence
Ban his account and his paypal/moneybookers/credit card so he can’t deposit any money, so he can’t purchase anything.
Second offence
If he decides to do it again (i don’t think he will thou) and we catch him (won’t be hard knowing all his info from the previous offence) we sue him, we’ll have enough evidence, he’ll go to jail. Again, i don’t think it will come to this, noone wants to go to jail for pirating $50 WordPress themes.
I know he’s not the only one, but maybe he’s one of the bigger pirates, even if not i’m sure we can stop them all eventually. Get one of them, let everyone know we got him and a lot of the other’s will s**t their pants and reconsider.
And i have another little idea but it’s not for a public forum, we’ll talk about it more privately if possible.
He can buy themes using fake pre-paid credit cards.
No because TF reviewer won’t approve a theme with encrypted files
Anyway IP.Board uses/used DRM system protected by Zend Guard.
Implement DRM system into functions.php, then encode this file using Zend Guard (99% of hosting companies has a Zend Optimizer installed on servers). As I know it’s really hard to break it and I doubt that anybody will spend 20 or even more hours decoding it.
There is another problem caused by piracy, the pirated theme loses the uniqueness. Who need a template used on 1.000.000.000 websites, it’s just a shame to use such popular template on business site.
Thanks for your help. Now my theme was rejected because design is not unique and too simple.
