I don’t think you guys should worry about VAT, Envato is the one who has the payment gateway and is selling and holding funds from the buyers – authors are just receiving commission for their “services” in a single monthly payment – that’s all the tax man needs to know and that’s all they’re going to see anyways
Not true in the US, where the 1099 Envato sends to the IRS will definitely not match what you report.
11 months later:
So two-factor auth was never implemented?
If the 1099 shows anything except pure earnings + referrals, this will be a nightmare.
Total revenue, depositing into credits, buying from credits, buying from PayPal, and withdrawing are all going to show a different picture of income and expenses. Odds are this won’t line up how most treat Envato transactions for tax purposes.
Here’s how I manage taxes from Envato: I don’t buy anything using credits. I always use PayPal to keep purchases and income separate. I withdraw my full balance every month to PayPal and that goes straight to my bank. That number is recorded as income. It’s always identical to my earnings for that month. This makes determining taxable income from Envato super easy. Purchases are tracked one-off as expenses and are deductible.
If Envato starts reporting some combination of revenue, deposits, credits, purchases, and Envato fees; then they better have a ton of new tools ready for authors to build reports so we can identify where money is actually flowing and have usable records. The “Statements” view is still a mess since the new fee structure.
I’ve been through an audit and unless Envato is providing authors a massively better paper trail, US authors will be royally rooted.
No matter what Envato builds, it needs to include authors who choose to build and run their own support systems. It doesn’t matter how quickly or robust Envato builds something, the biggest seller’s will always benefit from owning their process. It’d be a huge misstep if this is ignored.
I think the question is: do you trust any website to protect your SSN?
I definitely don’t. Breaches, hacks, data leaks, and security holes are weekly occurrences from major corporations. They simply can’t be stopped. With Envato collecting SSNs (and!) providing access to real money for withdrawal — that’s a big target.
Envato Market doesn’t even support two-factor authentication, which is an obvious security step beyond simple SSL. That still doesn’t protect against vulnerabilities on the other end. I know Envato has every intention and incentive to protect this data, and would prefer not having that responsibility.
But who do you trust?
Authors should be looking into obtaining an EIN (much easier/cheaper for sole proprietors) or forming LLCs. See:
How do you update your tax info if it changes? What are the implications if your tax classification changes mid-year? Is that history available? Who can see it? How long is it kept?
With taxes you only go down the rabbit hole. Get an accountant. Don’t screw around. Envato is doing the right thing, but it’s on you to provide the necessary information while protecting yourself (hint: not your SSN).
I can echo this is a recurring frustration. I usually ask to be notified when the new version checkbox is live, but never have been. I just find out weeks later that it was added when I spot other themes showing up with it.
Also, there still is no solution if you build a product with an extreme history of support (an awesome thing). You still can’t select more than 14 versions, which means I have to drop old versions that I have working code for. You’d be surprised how frequently I get requests from new buyers who want a specific back-dated release because it’s compatible with other customizations they require and aren’t ready to upgrade yet.
I get Envato’s problem is item lists look ugly when it’s filled with a giant glob of “supports x.x.x” statements. It would be so much simpler to say “Supports Magento 18.104.22.168 and 16 other versions”. You can show the full details on the product page.
Better UX would be highlighting if the latest supported version is also the latest stable release for a given platform. So you could design a more meaningful notice that shows which products are up-to-date and which are X releases behind in compatibility.
Could you please also make an overview page? It’s great to get instant access through the tab per item. But it would be great to have all stats gathered one page as well not having to check every individual item.
Definitely need a global page from the account level. At least just provide links to the analytics page for all the author’s items, so it’s only one click away. Imagine having to traverse over dozens of items in your portfolio.
Otherwise this is a welcome addition. I always neglected checking the external site because “out of sight, out of mind”.
The price will be over 1000$ (I’ve seen a similar request on a freelancing website and the quote was 2000$ to build the full, complete, online marketplace).
Envato Press Release: Collis fires the whole staff and runs Envato Market with $2000 and a freelancer after realizing that’s all it would take to clone it. Sounds legit.
A budget like £40m to revamp a multi-channel business means a significant investment in fulfillment infrastructure and backend software. Don’t kid yourself that an agency charged £40m for the website’s design/code. The whole operation could very reasonably cost that much to implement for large enterprise environments.