Posts by LThemes

19 posts
  • Has been part of the Envato Community for over 3 years
  • Has collected 10+ items on Envato Market
  • Sells items exclusively on Envato Market
LThemes says

99 998 wow that’s an insane number of sales congratulations to the authors

19 posts
  • Has been part of the Envato Community for over 3 years
  • Has collected 10+ items on Envato Market
  • Sells items exclusively on Envato Market
LThemes says

Awesome framework and fantastic work

I will be definitely using it for my first theme here at themeforest

Thanks for sharing this

19 posts
  • Has been part of the Envato Community for over 3 years
  • Has collected 10+ items on Envato Market
  • Sells items exclusively on Envato Market
LThemes says


Here is an article from 2004 on the VAT state back then: http://articles.softwaremarketingresource.com/2004/04/vat-how-ecommerce-companies-are-coping.html
Yeh but those are EU / US companies.. Envato is Australian based and AUS only recently being asked to comply.. similar to my country. .

Check the current and future rules here

http://ec.europa.eu/taxation_customs/taxation/vat/how_vat_works/telecom/index_en.htm#current_rules

NON-EU BUSINESSES supplying to: 3. Consumer in the EU – electronic services

Must charge VAT in the EU country where that consumer belongs (is registered, has their permanent address or usually lives)

Example

A private person living in Sweden uses a Japanese online library. The Japanese supplier must charge Swedish VAT.

This is the problem from past VAT, who will have to pay?

Envato as seller or author as “seller”?

19 posts
  • Has been part of the Envato Community for over 3 years
  • Has collected 10+ items on Envato Market
  • Sells items exclusively on Envato Market
LThemes says

Themepunch situation can be worse than just the 20% VAT that they can easily escape from. The worst part is if they have to pay corporate taxes or irs taxes, just look at the german tax rates Corporate: 30.175% to 33.325% (15.825% federal plus 14.35% to 17.5% local) additionally 18% pension and 15.5% Healthcare

IRS: max rate off 45%

Plus fines or worse.

These are stress times for european authors

19 posts
  • Has been part of the Envato Community for over 3 years
  • Has collected 10+ items on Envato Market
  • Sells items exclusively on Envato Market
LThemes says

Let’s do math. Envato tells my financial institution that I get 100%, but Envato taxes me for that depending on the author level. I sell a product that costs 100$, I get 70% from Envato, my financial institution taxes another @24% out of the whole 100%, that means you cut another @24% out of that, and voila, the price of my item is 100% and I get 46$. Where’s the logic in this? Because I’m really really trying to see it!

Basically said, someone is plain and simple robbing me of the 30%. Because I cannot declare that “Hey these guys take a 30% tax” because the Terms of Service of Envato say that I am the direct seller… which I’m not! :|

This is my opinion as an author, it does not reflect the opinion of a moderator, a staff member, or any representative of Envato

Envato can’t tell anything to your country financial institutions regarding you and VAT because as everyone already said, Envato is the clients supplier. If day do so, they are behaving in bad faith. But they can’t/will not do that. We as authors are suppliers of Envato, and Envato only. We supply our themes,scripts,etc for them to sell to THEIR clients.

So doing the math example VAT 20% You have an item that is for sale for $100 Envato will sell this for $120, will collect the $20 and manage it.

You will earn the $70 that Envato will pay you.

Only this money you need to declare, since its the only one you have received. Now depending on your earnings and you will have to deal with the irs or if you have a corporate you will need to deal with the corporate taxes. http://en.wikipedia.org/wiki/Tax_rates_of_Europe <- this table has the 3 taxes, corporate,irs and vat.

So out of your earnings you will have to pay your country the corporate or the irs taxes, no VAT because Envato will be paying it.

Besides those taxes add the dollar/euro conversion and european authors will have to work way more.

discalimer, I’m no tax specialist, but as i understand that’s how it works.

19 posts
  • Has been part of the Envato Community for over 3 years
  • Has collected 10+ items on Envato Market
  • Sells items exclusively on Envato Market
LThemes says

Guys, I’m not sure about this, but if Envato(Australian-based company) receives and handles all the payments, what does it have to do with the european union VAT laws? If I’m in EU, I only request VAT from EU-based customers, not from US or Australia. Envato being an AU-based company, it should probably collect VAT just from Australian customers. And since most of the customers are not AU-based, it will probably affect the marketplaces prices little to nothing. The issue is that they’re trying to put us as the sellers instead of them, which is completely wrong and not the reality.
Check this VAT info for current VAT and new VAT rules for 2015 http://ec.europa.eu/taxation_customs/taxation/vat/how_vat_works/telecom/index_en.htm

Accordingly to this page Envato already should be collecting VAT for European citizens(Not companies), according to each user country VAT.

So they are at fault regarding this. The move to say we are the sellers is to pass this this tax burden to authors. “Being us the sellers”, its us that are at fault regarding collecting the VAT from clients. But as some authors already said, we are not the sellers here. Envato is.

If Envato is being investigated by Australia tax offices, Envato will take a huge hit. They will have to pay the past years VAT from European citizens plus fines.

For 2015 if Envato wants to keep the same business model, they just need to collect the VAT from the EU citizens. We authors won’t take the cut, neither will Envato, it has to be the buyers to pay. So prices will increase for EU citizens.

If they want us to be the sellers they have to change the system.

I’ve sold themes in a platform that worked something like this. Client payed via paypal, i’ve received the money instantly and paypal automaticly payed to platform the fee for using it. I think its called adaptive payments.


In fact, I think that’s one of the main reasons we’re paying Envato 30-50%, so they handle the payments and everything related to that. If they quit doing more than half of their job, the question is: Is it worth doing ALL the work related to a business while still paying, potentially, half of your earnings, just for having some exposure on your items?

Envato isn’t a guaranteed sales / exposure generator anymore, those days are long gone, calculate how much you pay Envato, how many potentially visitors you could get from investing that money into advertising yourself and, for most authors that are well-established, it will turn out way more profitable in the second scenario.

An author that earned $250k paid almost $80-90k to Envato. If what we’re all afraid of comes true, Envato will only give us exposure.

Guys, that’s 80,000 dollars. Imagine spending those on advertising yourself, you think you wouldn’t get exposure that way?

Envato still has lots of exposure, but as you said there’s no guaranteed sales just for being in this marketplace. But still would you make $250k if you have your own shop or using a smaller marketplace? It’s only after you made $250k you have paid $90k, unless you already had a budget for this, one man shops don’t have the money, time or knowledge to make it. I think its a fair trade. I’ve read somewhere that we should treat Envato as an affiliate that send us traffic.


And it’s been a month already, it’s not hard at all to write an update. You just need to decide: profit vs community. Because once you made that decision, there’s no going back. You know nothing’s doing to last so do your decision carefully. I’ve never seen that many elite authors concerned and that’s something you should think about. And considering these changes are due to next year, delaying it further is NOT okay, if you need a damn month to write a blog post claryfing the situation, how much time do you think we’re going to need in order to re-think our whole business situation? And considering December is coming, having one month to re-consider all our choices is not what we’re looking for.

We are all impatient about this and the sooner we have more details the better. I’m impatient too, don’t know if i should work to release themes here or not. Envato has a lot of potential for authors but this late decisions makes us fear the future here.

19 posts
  • Has been part of the Envato Community for over 3 years
  • Has collected 10+ items on Envato Market
  • Sells items exclusively on Envato Market
LThemes says
19 posts
  • Has been part of the Envato Community for over 3 years
  • Has collected 10+ items on Envato Market
  • Sells items exclusively on Envato Market
LThemes says

Yes… it’s sad that things like this are possible… As a different story, i got 1 star from a client, he got his money back from themeforest , he is still using the theme and i still have that 1 star … Client – WIN , me and Envato – LOSE :)

If he is still using your theme, send him an invoice or Envato should send him an invoice for using your theme without authorization.

Or

Send him and his host a DMCA notice, as he don’t have a valid license to use your theme.

If he is in same country as you, sue him.

Regarding the ratings.

They should be available for everyone to see, and we authors could reply to them. Potential new buyers would check the low ratings to see whats the “problem” with the theme and would facepalm when they see ratings like the OP

19 posts
  • Has been part of the Envato Community for over 3 years
  • Has collected 10+ items on Envato Market
  • Sells items exclusively on Envato Market
LThemes says
19 posts
  • Has been part of the Envato Community for over 3 years
  • Has collected 10+ items on Envato Market
  • Sells items exclusively on Envato Market
LThemes says

click the thread title and navigate to page 21

Mod deleted some posts making the last post url giving that error

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