Few days ago I bought a new phone (LG G Flex 2) and also a laptop (Acer V15 Nitro), so I can work outside home. (It took me only 6 months to pick a proper laptop). New projects should start coming soon
I remember my project going on pirate sites right after it became featured on VH. Fortunately, I sent so many DMCAs that uploaders gave it up after few days…but today it’s widely available, again.
I love the new player, but please add the volume control, it’s essential.
(2) There won’t be VAT on the author fee because for EU VAT Purposes, Envato acts as a supplier in the middle. This means that for VAT purposes our invoice for an author fee is immaterial, because as far as the VAT is concerned the author supplied to Envato, and Envato supplied to the buyer.
I explained this in my post about the EU VAT changes here – http://themeforest.net/forums/thread/author-information-about-eu-vat-changes/160108It’s a very strange side effect of the EU VAT laws, and is only relevant in the EU.
Author Fee are transactions only between Envato and the Author, am I right?
Author Fee is explained (in a simple way) as a “service”, not commission, am I right?
If answers to both questions are “yes”, then:
- Author has to report his full earnings, then deduct Author Fee as expenses
- In my case, this is service provided from Australia (classified as 3rd country type) to my EU country
- If I am receiving any service from 3rd country such as Australia or USA, I need to pay VAT for it.
So for example if buyers will pay $1000 for my projects, according to my current rate (60%) :
*20% is buyer fee = 200$
*80% is my gross income = 800$
*20% is author fee = 200$
*20% (in my country) from author fee is VAT = 40$
My net income is $800 – $200 – $40 = $560.
Same rules will apply to many EU authors, you are forcing them to pay additional VAT and higher income taxes due to higher gross income. So they might not be responsible for VAT purposes regarding sales, but many of them are responsible for VAT purposes regarding Envato’s Author Fee. The whole mess could be simplified just by charging buyer fee only…you don’t need Author Fee at all.
I have checked every single laptop on market, because I want to get out and make projects outside as well. My choice is: Lenovo Y50-70 with 4710HQ cpu and 16gigs of RAM. However I’m going for classic TN panel 1080p version (which is known for terrible viewing angles and poor colors) and I’ll switch it with an IPS screen (there is a lot of discussion about this display change on the internet). Also I’ll change the internal HDD for Samsung 840 EVO 500GB SSD, it should skyrocket.
I would not go for UDH display version because:
- You will need to switch to 1080p resolution for After Effects which will result in worse picture quality than on native 1080p display (After Effects CS4-CS5-CS6 are not optimized for UHD resolution, all icons will be tiny & unreadable…only if you use CC 2014 version you should be fine)
- higher resolution = higher power consumption
- UHD display has a 48Hz locked refresh rate, which might be noticeable
SnoopyIndustries you forgot the part where Envato is making invoices on our behalf, the invoices we need to include into our accounting, the invoices which are unusable in my country, the invoices which might force me to register for VAT even if I don’t have to pay it. Or the part where we have to declare our full earnings before Author fee, the earnings which never reach our bank. Or the part, where many authors are forced to register for VAT because they need to pay VAT for Author fee. Or the part where all these transactions are happening on a marketplace with virtual currency, not in our banks…I’ve spoken to few accountants, so far it looks like a total dealbreaker.
Az teraz som si vsimol, ze tato tema ozila a som rad, ze to ostatni neberu na lahku vahu. Pridal som sa do FB skupiny.
One more important question. It has been already asked, but I want to make sure it won’t stay in the dust.
Why there have to be 2 fees? Why do you need to charge from both Author and the Buyer?
You could simplify the whole process by charging just one fee from buyer, it could be called for example “Handling fee”, it would go from 50% to 30% (64% if buying from non-exclusive author) and in the result:
- The money author would receive on the invoice would match with his balance increase (no misunderstandings like “I earned $10 but on invoice it says $15?!”)
- At least for Authors, the statement page would be again simple without “Author fee” mess
- Authors would not need to report higher income than the one truly earned = many Authors would pay lower income tax (as before this change)
- Author’s fee is the service you are charging to Author = many Authors need to pay additional VAT for this service
On the other hand:
- Envato would still get the same cut
- I believe buyer doesn’t care if he is invoiced ”$32 by Author and $8 by Envato” or ”$20 by Author and $20 by Envato” = in the end he is invoiced the same amount of $40
Please consider this.