Just come across an image which tried to explain if the new VAT rules affect you and one of the questions is: “do you only sell your e-services through a third party platform or marketplace”.
If you select yes, it takes you to “These rule changes don’t apply to you”., so basically Envato are doing what they have to by law and collect the VAT themselves.
It was created by the UK tax authority so is pretty much what you should follow if you have any doubts on any of the new rules.
Thanks for sharing this!
True, but I wonder how long will it take for EU buyers to realize they can use a VPN software/service to fake their location to not pay tax. It’s really simple actually.
Also, many authors are expecting Envato to pay those past years of taxes. That won’t happen, if authors earning 50%-70% can’t afford to pay, lets say 20% (average EU tax) of previous years earnings; how come Envato earning 30%-50% could? Plus, Envato has to pay the fees for the transactions, and to cover all the operational costs etc…Seems like there’s a lot of information on the internet about this new tax scheme. However, it doesn’t say what the EU would do if foreign companies don’t comply. I mean, what could they do anyway?! You can’t just legislate for foreign territories.
If the law goes into effect January 01, 2015 why does Envato have to pay for past years? I got to look up this law and read up on it.
This is all bad for business. 2015 is going to be a very interesting year.
@ senorthemes — That doesn’t matter anymore. The new EU law taking effect on January 1, 2015 changes the tax zone to the place of supply not the seller’s location. It appears that a US author selling to an EU customer is required to charge EU VAT if they’re not a non-business (i.e. no VAT number) and remit that sum to the buyer’s national tax service or through the MOSS-VAT process. Both are horrible EU bureaucracy’s for any small business to take on. The process to determine a seller’s tax state and record keeping requirements are equally insane. The EU is economic garbage.
Interesting. I take it Envato’s going to hold themselves to be the ones responsible for collecting the tax and dealing with all the noise involved with reporting and sending the taxes to the EU.
I’m surprised nobody has brought up the possibility that buyers in EU might turn to buying there themes from authors outside EU to avoid paying more (because of taxes) for an item.
Here in the US, I know many people (including myself) that tend to buy from businesses outside there home state to avoid paying taxes on the item(s). That’s because here in the US, online business are only obligated to charge taxes for buyers that reside in the same state as the seller. I see this as the same logic here for sellers and buyers from EU.
I think it might have been rejected due to design quality…if that was the case they would have told said so in the rejection email you would have received.
So cool! You’re an inspiration to us all. Thank you for sharing your story
Are there affiliate links on the purchase buttons? I didn’t see any ref= params. It would help if someone from outside the marketplaces found your site and became a member here. You should post thus on hacker news and reddit and watch how many referrals you get.
Yeah, I notice the purchase buttons have an affiliate link, cha ching! Noticed it yesterday.
actually that option was added to decrease confusions.
I was thinking the same thing too but you can see how inadvertently this causes confusion and problems of other kinds. Buyers download just the Installable Wordpress file only and then they open up a support ticket because there’s no docs, no demo data, no direction, etc…I’m almost inclined to add links to online docs directly within wp-admin to avoid this. I know some authors already do this.