Creative-Medias saidHope you are kidding… if we need to contact buyers one by one i need to hire someone just for that, without results, and working becomes useless, just a loss of time. AT LEAST with all this mess prices must be double (for themes) and 10 times higher for all the stuff like graphicriver, where 3 days of work are sold at 10$.
Same here in france, invoices are NOT valid without full address, VAT etc… when this will be fixed? How can I contact the buyers to get the proper informations?
Here’s an interesting article: http://www.crunch.co.uk/small-business-advice/2014/11/11/vat-mini-one-sto-shop-impact-eu-paymentsHowever, the online shop will be responsible for paying the VAT if they’re seen to be ‘acting in their own name’, meaning you are selling your services to the shop, which they are then selling to the customer. This is likely to be true if they operate the whole sales process. This would be classed as a B2B sale, so the changes would not affect you and the sale would be classed as outside the scope of VAT.
The complete thing they say is this:
You will be responsible for paying the EU VAT if the online shop is seem to be ‘acting as an agent’, meaning you are selling directly to the customer. This is likely to be true if, for example, you’re the one processing card payments for your sales.
However, the online shop will be responsible for paying the VAT if they’re seen to be ‘acting in their own name’, meaning you are selling your services to the shop, which they are then selling to the customer. This is likely to be true if they operate the whole sales process. This would be classed as a B2B sale, so the changes would not affect you and the sale would be classed as outside the scope of VAT.
As things are set up here now:
1- authors are NOT selling directly (we are NOT in the case number 1 as we do NOT receive and process payment ourselves)
2- QUOTING: ” the online shop will be responsible for paying the VAT if they’re seen to be ‘acting in their own name’, meaning you are selling your services to the shop” THIS is what AUTHORS are doing here. For a very simple reason: when buyer pays, money goes to Envato. Envato is not a bank, so money are not technically in my pockets, so the transaction is not between me and customer.
that said, is it legal that envoices goes out with my name? Don’t think so. Plus: there are international instruments to check the validity of a vat number of a customer, and i cannot have out there invoices on my behalf before first checking that the data provide from the customer is true.
Do somebody have a different opinion?
pixelcave saidUnder UE law Envato is seller. They can talk that we’re “sellers” but facts are incontestable here in UE. If we’ll be forced to pay taxes through VAT MOSS for each transation we made and get money directly then we’ll be the sellers.
Following the latest developments, it really saddens me how everything seems to turn out. I’m going to arrange a meeting with my accountant next week but the way the announcements are being made and applied, deeply worries me as an author.
Even if I bypass all current open issues regarding money flow, the automated invoices (there is no way I could possible use them along with my invoices outside of Envato in Greece) along with the legality regarding who is the seller, the accounting troubles and costs such move could cause to a small business are huge.I’m really hoping for the best for all of us (buyers, authors and Envato) but for as long as Envato “can’t” be the official seller, I’m not sure how small businesses like mine will be able to remain sustainable in the future in such business ecosystem.
In fact. This is 100% inconfutable. The new invoices they do is useless paper for internal use only. In the end, nothing changed. A company cannot change the laws, which are pretty clean: who takes money is the seller.
These new invoices are useless.
Apologies if this has been asked or brought up already, but these invoices appear to be un-usable unless they are in an authors currency right? All the invoices in the images say USD, can I assume it will always be in USD?
The problem with that is if my invoices are in USD the actual money I received monthly in AUD is just never going to balance.
On top of that, even if the invoices are in AUD, the currency price changes daily, so the money I receive on the 15th, won’t add up to the total invoiced amount for the month prior.
Maybe I’m missing something simple, but I feel like I’m going crazy. Does no body else see this? I use fresh books for my account keeping and they don’t allow for cross currency keeping mainly because its a nightmare.Im going to continue invoicing Envato once a month after I receive the money in my account. Thats the ONLY way to maintain a balanced book keeping system if you’re not living the US.
Envato pays me in USD. Do they pay you in AUD?From the accounting and taxation point of view, I need to decide how much that USD sum equates to in my local currency. I usually work on a cash accounting system and convert it at the rate that is current on the day that the payment is received. As far as I’m aware this system is perfectly acceptable, as long as you are consistent with it. If I were required to convert every Envato transaction to a local currency amount based on the invoice date, this would create a massive amount of work.
In fact to make my invoices i need to wait how much i get in € after payment is done from Envato.
Also consider: invoice goes with the money flow: if envato send invoice on my behalf to xyz, i don’t even care about that. The company that receive the invoice cannot discharge it from costs as they didn’t pay ME but Envato. No way that a freelancer can use these invoice in their countability.
Hi Collis, thanks for Saturday early morning reply. Could you please clarify this point?collis said
No, VAT will be collected and remitted under Envato’s MOSS registration, not an authors name.
Then, to EU authorities, you won’t report our personal/business name, right?This is always in relation on my main question: will EU know that “LCweb” made 1000 sales for 1000$ of gross income in 2015?
If I’ve properly understood, each sale’s VAT will be collected by Envato. Then at EU eyes Envato will be the only VAT “dealer”, right?
That story sounds pretty inappropriate. An official written document from Envato for all Authors needs to be emitted in order to present it to tax authorities. Plus, is inadmissible that Envato makes invoices on behalf of the authors as they cannot be admitted in the countability of a company, which needs invoices in a subsequent order.
Do somebody from Envato understand that thing in Europe cannot be done?
Hey! Some of you guys know a super mega European business consultant/commercial law expert?!
Pointless. Every serious author here is a professional with a vat number or a company, so we all know already what it means to deal with taxes and laws, and what is right or not. I’ve been working for years in a big business consultant center, and also if I know nothing about laws ant things by a csientific point of view, is pretty clean that all the way this thing is being managed from Envato is not possible under any point of view.
Recapping the situation after reading all the things published by Envato so far: 1. author becomes sellers 2. envato take a percentage as commission 3. there is a shadow (illegal) invoice that goes from the author to the buyer 4. buyer can declare to be a company to avoid paying VAT, we cannot check 5. authors are paid by Envato but make invoice to customers, so transaction doesn’t have any real cash flow proof 6. author needs to discount commission from earnings, so potentially I can pay 0 taxes or be in permanent credit if commission is 50% (for example) or if my tax rate is less than normal for particular situation 7. envato collect vat for us (and we say to tax office that someone did for us) which leads to an impossible situation, 8. authors who sells small things will stop existing as incoives for 2$ are simply silly as killing flies with a shotgun 9. we have no certified docs nor transation about the commission held from envato which makes legally impossible to discharge the cost from the earning 10. invoices are issued without permission to people we don’t know 11. invoices are out of any order for a professional like me that has many other invoices to external customers
This is what we know til now, all illegal, and all without permission from the authors. Strange that noone is so concerned about this things. What did I understand wrong in this things?
Plus consider this: we have no control on these invoices: if automatic invoices are issued to customers that we have no proof to be real, and in one year it results that we emitted tons of illegal invoices, we are legally responsible for this super big mess? Out of ANY human imaginable universe. Like… one makes an account with name bin laden, i have to register it and i get arrested because i’m working with a terrorist, without any possibility of control over this! silly.
the sellers (envato or authors) have to validate buyers VAT# and given buyers company information against (be)for(e) each time an invoice will be accounted to the buyerI could go to http://orf.at/stories/orfonimpressum and take their VAT#ID – WHO IS CHECKING THIS??? – responsible is the seller (invoice creator/sender)
This is a very serious thing in Europe. But is wrong in the principle to worry about this as the invoice must be issued from who receives the money.
weibergmedia saidNow imagine paying VAT. Becoming direct seller makes every Envato author VAT responsible. There’s no money flow in your bank account to prove that you paid VAT…
Correct me if I am wrong, but don’t authors need the money flow as proof of ones invoices? I always back up my invoices with a proof of the exact money flow, but with these new invoices for each and every sale I cannot do that?! Same with the author fee. I never pay any money to envato for this fee, so how can I use this bill without any money flow?
Exactly, thing that makes automatically all authors tax pirates. So let’s make our own country with our own taxes, like benelux or Liechtenstein, only way not to go in jail because of this mess.