We were in San Francisco last week, enjoying WordCamp SF We met with another marketplace that said they are currently going through the same legal/tax issues that other marketplaces are also going through. They have said that they may end up just eating the cost of VAT/Taxes and will not off-load this onto the marketplace authors. It will be interesting to see what Envato chooses.
I am not sure a business would be willing to completely and silently “absorb” VAT. Didn’t they say anything about “off-loading” (as you called it) to customers?
VAT should always be absorbed by the end customer, visibly. The customer should know about it. So for example if the buyer is a registered user from Germany then Envato should display him the item price in a way similar to this:
$100 + 19% VAT = $119
Envato should then transfer those $19 to the proper tax authorities.
This means effectively raising the item price if this system was (as they told us) not in place before. No business should bite the VAT bullet. By design, you are just supposed to collect it from the customer and hand it over to the tax authorities. Just like we authors do not want to absorb it, Envato does not want to absorb it either. What’s worrying is that Envato tries to make us absorb these costs, even in retrospect and paints a made up picture of how thing are and were.
Wow, this is really serious thing which I should see coming after the change of the fee structure. We all know, that there are some principles of accounting. One of them is that the books have to honestly reflect the situation in the firm. From my opinion, this change you guys are making at the Envato is breaking this principle and you couldn’t make it through audit, but this is just my opinion (master in finance), and I’m sure you already consulted it with lot of professionals (not a sarcasm).
I’m also sure that you are aware of issue for European Union authors, because before announcing this change you must ordered some kind of study, where this is 100% percent reflected and you just don’t care…
I’m not sure with the details, because I didn’t need to apply this before, but the principles are:
If you reach some kind of year turnover (say 60k$) OR if you sell to another EU country, you have to pay VAT
You have to check ALL your buyers to see from which country they are
If they are from EU, you have to send them INVOICE, and as someone mentioned in reply before, this invoice has different VAT size for different situations and states
You have to send all this things to your local tax office, on monthly or 3-months basis
For 99% you gotta hire accountant for this things, and it will be expensive, because these international business transactions are really new to lot of them
- If you reach some kind of year turnover (say 60k$) OR if you sell to another EU country, you have to pay VAT
- You have to check ALL your buyers to see from which country they are
- If they are from EU, you have to send them INVOICE, and as someone mentioned in reply before, this invoice has different VAT size for different situations and states
- You have to send all this things to your local tax office, on monthly or 3-months basis
- For 99% you gotta hire accountant for this things, and it will be expensive, because these international business transactions are really new to lot of them
So thank you envato. From simple taking all the money you sent me, deducting all the costs, and filling the tax form, which took me exactly 3 hours per year. You force me to run serious accounting operation which will cost me thousands of dollars per year and also it will enlarge my taxes.
Also Envato, I don’t understand your situation, so I don’t know what exactly you’ll win with this, but I think it will be smaller taxes. But given your profit, this is really greedy and it will affect ALL the serious authors, who make themes as a business. Only the newbies who make few hundred bucks per year, will still be there.
This also enlarge the barriers to entry the industry, because if you are a hobby author form EU, you simply don’t have money / knowledge to handle this accounting thing.
I am strongly against this. What are we paying you for again?
If I am not mistaken, the guy behind that website is freshface…
We don’t have a project like that. Maybe someone from our team talked about this idea in some way or other back in 2010, but nothing concrete came out of it as far as I remember.
Reviewers usually provide good feedback, but when it comes to design it’s not really easy to explain to someone why exactly their design needs improvement so you usually get the cookie cutter responses like “bad typography”, etc.
Could someone from Envato Team look IMPORTANTLY at this?http://themeforest.net/forums/thread/important-collateral-damages-caused-by-revo-slider-hunt/141714
Bump, any response?
It’s great that envato make some actions about the outdated Revolution Slider. But I think that you guys should be more careful when soft disabling themes. You disabled our theme London Creative +, reason is that it contains a the problematic Revolution Slider plugin. So far so good. The problem is that our theme does not contain Revolution Slider plugin at all! This can happen only if someone wasn’t even able to read the item description. Since the response time on Envato support is measured in weeks, same as the review time, I opened a thread and I demand activation of our template here.
Short answer is no. More info should be somewhere in the TOS. But an author can verify a purchase code manually so if you can get that then you should be good to go to receive support (it’s up to the author discretion though).
Well to be honest it doesn’t happen often to us. But when it happens, it’s still our paying customer and we treat him like a customer, because it’s the guy who votes for us with his wallet. So we are polite and helpful as always and doing our best to solve his problem