Posts by Gareth_Gillman

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Gareth_Gillman says

Why do authors (non buyers) need to provide VAT since VAT is being charged from where the customer is located?

I am guessing it’s done on a global scale (of the Envato network) as anyone who is an author can also be a buyer.

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Gareth_Gillman says

just downloaded it, but it doesn’t say anywhere that it’s the new version.

It won’t do but the item was updated on the 4th November, so I am guessing this is the new version, you can also check the changelog file which may be in the zip file. The easiest way to check what version a WP theme is, look in the zip file for the style.css and it should have the version number near the top of the document

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Gareth_Gillman says

It’s still for sale on Themeforest so it should still be in your downloads, are you logged into the right account?

Unfortunately no one can help with account issues, you will need to contact Envato support and they will be able to help, but they are under a lot of tickets so your ticket may take upto a week to get a reply.

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Gareth_Gillman says

As requested by Kingdog here I am opening this thread for members to discuss a big issue at the moment, who is the real seller?

Envato say the author is the seller and they are the middleman but all the money trails lead back to Envato, so who do you think is the seller?

I wrote a post on my thoughts here

Discuss

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Gareth_Gillman says

Sadly it seems that any CEO can be corrupted, no matter the “community spirit” that they preach.

Like it or not, Envato are now classed as a large business and therefor have to play with the big boys but I don’t think Collis has been corrupted but is being advised by lawyers / accountants who are used to working with large corporations who want to reduce their tax bills.

Unfortunately this is going against everyrhing which Collis has said for the last 6 years and is creating a lot of issues which need to be sorted. It’s clear Envato are in a period of change (of structure) but they need to define what they want to be, and sort the processes out before the floor begins to fall.

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Gareth_Gillman says

Yes, the exclusivity means, if I upload Theme A to Themeforest, I can only sell it on Themeforest, but I can sell Theme B anywhere I want. Envato will have exclusivity on any items the author uploads, not on items created.

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Gareth_Gillman says

I can’t see any logical reason for the “authors are the sellers” apart from tax evasion (which is legal), basically they are doing what Amazon, Starbucks and other corporations do, limiting what they “earn” to pay less tax in high taxed countries.

Example, if you buy an item from Amazon in the UK, the money is paid to Luxembourg and then they pay a Amazon UK to ship the item to the customer. Amazon UK only declare the shipping costs paid by Amazon Luxembourg instead of all the money received from customers.

Envato is doing exactly the same with all the recent changes (buyer fees & author fees), instead of them receiving $60 for the item (which they do), they are saying they only receive upto 50% of this as they are paid “fees” by the buyer and the “seller / author”..

Now in both cases, buyers are under the impression they are paying the website for their product, but the companies have deliberately made it differently Envato are basically cutting their “revenue” by 50%.

Now Amazon get away with this legally because payments are actually made to Amazon Luxembourg but all payments on the marketplaces are made to Envato. Going by the trail of payments, Envato are the seller.

Amazon have a marketplace system which works similar to Envato in that a seller is charged a percentage of their sale as “fees”, Amazon don’t receive the payments but they are paid directly to the seller, and they then bill the seller for all their “fees” which can be paid from their Amazon account or by a monthly bill. eBay also works on exactly the same system.

If Envato want to be the midde man, this is where they need to go, the buyer sends the money to the seller and then the seller is billed afterwards for the fees of the transaction.

What does this mean for authors? Who knows! Envato could backtrack and go back to the “old” system and continue being the seller, they could continue down the current path and be the “middle man”. Personally I am not a fan of companies using their customers and suppliers (authors) as pawn in their mission to save a few million dollars. I can see why Envato are doing it but they are currently in the middle of 2 systems, the current “system” is flawed in that what Envato are saying doesn’t match what actually happens, they need to define what they want to be and amend the “system” to reflect their goals.

p.s. this will probably get removed…

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Gareth_Gillman says



Are authors obligated to give that VAT Number? I don’t have one … aka my business model doesn’t have one! :| What happens if I don’t provide that number ( to my sales and buyers ) am I affected in anyway on the marketplaces?
Can someone please anwser this? ...
The VAT number only helps you in getting the VAT money back. If you give a VAT number the VAT paid by the customer will be associated with that VAT number and then you will be able to claim back that amount. If you don’t give a VAT number, the VAT money will be all given to the EU.

As creative said, this is totally wrong, you can’t claim back VAT which a customer has paid for your items (products), it only lets you claim back any VAT that you (the business) has paid.

You only need to reclaim VAT if your seller hasn’t charged VAT separately (normally businesses that aren’t registered).

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Gareth_Gillman says

Hmm, I assume that providing EU VAT now is only for buyers. Even if Envato collect VAT for me (author) they don’t need my company number and my country.

They only need your VAT number if you are buying an item, it’s not needed if you’re selling

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Gareth_Gillman says



So..if i’m buying an item from GR i must pay a 20 to 27 % tax for that item and the tax is collected by envato and send to my country even if i don’t have a VAT number?

What’s the VAT tax in your country? If you are from a EU country and you don’t have a VAT ID you have to add this percentage to the item price.

  • So if your tax is 20%
  • and you live in a EU country
  • and you don’t have a VAT ID
you have to pay $12 instead of $10
VAT tax is 24%. Like themac said is not about additional fees i must pay for an item..my question was if the tax money will be send in my country even if i don’t have a VAT number.

It’s the same as if you went into your local town and bought a car, you would pay 24% tax on that item (but it’s normally added in) and then this is sent to the government, Envato will work in the same way except your VAT is added on at the end.

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