This is the polite way to announce we are on our own and we are going to have to pay past VAT ourself. “Supporting our authors” just means they’ll provide all the information they can about the buyers in order to fill the VAT declaration properly, which is a position clearly aligned with the new buyer/seller relationship. It all makes sense.You’re taking it the wrong way. It’s virtually impossible to get past VAT back retroactively. Furthermore, natman has confirmed already that the new changes will NOT affect past sales and that the past is the passed.
What was written is that they are not going to retain money from our envato account to pay past VAT. Yet, they still not have clearly stated who will pay for it.
Effectively the past is the past, and those sales and payments have happened already… we will be supporting our authors.
This is the polite way to announce we are on our own and we are going to have to pay past VAT ourself. “Supporting our authors” just means they’ll provide all the information they can about the buyers in order to fill the VAT declaration properly, which is a position clearly aligned with the new buyer/seller relationship. It all makes sense.
Envato should seriously start considering giving clear answers about past VAT.
The fact that authors start talking about lawsuits and international class actions is not a positive sign.
You do realize that would lead in thousands of law suits.
Nobody here has the required money and resources to start an international lawsuit against Envato.
it would be incredibly hypocritical to say they’re responsible now, but not thenThat’s why it will be very “interesting” to see what they’ll have to state about this (but it won’t happen before 2015).
I don’t see how Envato could say “we’re responsible for VAT now, but you guys were responsible for it before, even though you had no customer information or ability to actually pay it.”
That’s pretty simple: can you imagine how much of a cut it would represent on their bank account if they had to declare/pay the whole amount of past VAT ?
They probably just did not incorporate VAT in their business plan and accounting in the past years.
The whole thing could easily be a 10% – 20% cut from their gross sales in the six (or so) past years.
It is very unlikely they’ll do it.
Also, they are probably currenty evaluating how much money it is going to represent (don’t forget they just asked authors to “officialy” declare which country the depend on).
That is why they don’t answer to any question regarding past VAT : they just don’t know if they can pay it by themselves of if they are going to report it on authors.
If Envato deducts the amount from our accounts, authors that are Elite will end up having a sale_reversal of around $15.000 +
Envato will NEVER EVER reverse this money back, it represents millions of dollars for the past 6 years and they litterally have no guarantee this money would be used to pay VAT.
Authors are going to have declare/pay it on their own.
From there, there are only 2 scenarios:
Scenario 1: all authors will get a notice with the proper VAT amount of the past years to declare to their local tax office. If you made 1000€ in the six past years and your VAT is 10%, then you will get a notice that you have to declare and pay 100€ directly to your local tax office.
Scenario 2: envato won’t authorize you to withdraw you money until total past VAT is not cashed in with your future sales.
This VAT has not been paid by anyone (either envato or authors) and the recent changes in the seller/buyer terms is clear proof it’s not going to be Envato.
Imagining or writting about any other type of scenario is just a pure waste of your time and complete blindness on all the annoucements that have been made these last weeks.