KrownThemes saidExactly, when I was starting few years ago, I described situation to my Accountant, and we consulted it with local IRS, and in conclusion we do it here similar as KrownThemes says.
And how do you know if you are selling to an EU customer without knowing anything about him?Because i am “selling” to Envato.. This is the only way we can operate a business here. I am not selling digital goods to buyers which i do not know – i am providing IT services to an Australian company called Envato, which pays me a variable salary on the 15th of each month
Envato is the seller, and we are licensing our work to Envato…
The ugliest and cheapest looking site ever!
Where’s Collis? Why is he hiding?
Hey Collis! I hope you’re fine!
Can you answer these questions:
Am I the direct seller of my items on this marketplace?
Can I get the name, address an VAT ID of my buyers?If I’m right you have to answer both questions with the same answer
Finally Looks good but… The most important thing is missing for me, I still cannot purchase easily for example 25 license of the plugin without contact support team? For now I need to add item after item and change license each…
+1This is more important than buying from multiple marketplaces at once. If buyers are given the choice for license number, more of them might realize that a license is valid for a single use. This is a crucial feature.
+1000 Whats the problem to add something like this For me this is very strange to make a shopping card without such basic feature…
I just spoke with my accountant, there are only two options for us either Envato will add to their ToS that this is not a direct transaction (and this is the better option) the other one is that Envato should provide all of the info about the client. P.S When I said that the Envato says this is a direct transaction she laughed pretty hard…
Yeah, mine laughed as wellThe problem is even Envato gives us all the information we need as “sellers” (also the past ones) how can we proof that we didn’t have to pay VAT in the past
We cant, thats why I am saying the first option is better
For me a perfect solution and also the fair one is for Envato to admin that from the beginning till the end of 2014 this was not a direct transaction and from 2015 they are changing the rules and it will be a direct transaction, they pay the VAT for us (accordingly) give us all of the info about buyers and tools to print out invoices, add refunds etc.
P.S I am not sure why they are reacting to the EU changes at the last moment, because the changes take effect from the January 1st to there are only 30 days to go.
Also for me this is the only solution we should agree on because any other solutions means throwing authors under the buss.
I just spoke with my accountant, there are only two options for us either Envato will add to their ToS that this is not a direct transaction (and this is the better option) the other one is that Envato should provide all of the info about the client.
P.S When I said that the Envato says this is a direct transaction she laughed pretty hard…
One more thing because I am not sure if I understand correctly. We are the direst seller to the customer (lol) so we will have to create an invoice for every customer instead of one invoice to Envato at the end of the month?
Hi, I don’t understand and to be honest I am super confused and scared whats coming. I am from Poland and I pay taxes here. The way my accountant manages taxes is that “I sell licenses to Envato” so every month I prepare an invoice, pay income tax and everything is fine. I am a VAT payer but IT services (selling licenses for software etc.) are not subjected to VAT (from Poland and as I presume from any country in EU) when you sell them to Australia (the VAT is 0%). So everything I buy as an expense for my company 23% VAT (VAT in Poland) of that comes back to me.
How is this suppose to work right now? I will have to check from which country every buyer is and add VAT accordingly on the invoice? What about the VAT that comes back to me?
The only solution that work and wont kill the authors and our accountants is to add the VAT based on the country the author is sitting in + transfer the VAT to authors account and let them deal with the IRS etc.
Otherwise we cannot really deal with the VAT ourselves.
P.S If I understand correctly Envato will pay the VAT for us? And what about if I have other clients besides Envato, some of the VAT will be payed by me and some by Envato?
This is crazy