63 posts
  • Author had a File in an Envato Bundle
  • Bought between 10 and 49 items
  • Elite Author
  • Exclusive Author
  • Has been a member for 3-4 years
  • Referred between 10 and 49 users
  • Sold between 250 000 and 1 000 000 dollars
Diabolique says
I just find following info here: http://themeforest.net/legal/membership
You are responsible for paying all fees and taxes (including withholding tax), associated with your use of the Sites wherever levied (including any goods and services or value added taxes, which will be added to amounts billed to you, if applicable).

Right now I pay 20% CIT and 35% of national insurance. So as I understand I have to pay VAT (25%) too?

1645 posts Multimedia Artistry
  • Author had a Free File of the Month
  • Has been a member for 3-4 years
  • Referred between 100 and 199 users
  • Bought between 10 and 49 items
  • Exclusive Author
  • Most Wanted Bounty Winner
  • Elite Author
  • Sold between 100 000 and 250 000 dollars
dnp_theme says

You PAY VAT anytime you purchase anything from your local market according to your local legal system.

454 posts
  • Bought between 10 and 49 items
  • Exclusive Author
  • Has been a member for 3-4 years
  • Microlancer Beta Tester
  • Referred between 1 and 9 users
  • United Kingdom
Gareth_Gillman says

No you don’t need to pay VAT on earnings unless:

- You’re earnings reach in the last 12 months have been at the VAT limit for your country (£77k in the UK) - You are registered for VAT (voluntarily) which can be beneficial if you buy a lot of goods (not applicable to web designers IMHO).

You need to talk to a tax professional in your country but unless you can say yes to the 2 above then you don’t need to worry.

1589 posts Don't Worry, Be Happy
  • Beta Tester
  • Grew a moustache for the Envato Movember competition
  • Elite Author
  • United States
  • Sold between 250 000 and 1 000 000 dollars
  • Has been a member for 3-4 years
  • Referred between 200 and 499 users
  • Most Wanted Bounty Winner
+2 more
FinalDestiny says

I think you need to pay VAT only if you’re receiving money from EU. Since you receive money from Envato, Australia, I don’t think you’ll need to pay VAT even if you’ll reach that limit and be registered for VAT

63 posts
  • Author had a File in an Envato Bundle
  • Bought between 10 and 49 items
  • Elite Author
  • Exclusive Author
  • Has been a member for 3-4 years
  • Referred between 10 and 49 users
  • Sold between 250 000 and 1 000 000 dollars
Diabolique says

If Envato is an Australian-based company then they should add VAT (10%) to all prices – http://world.tax-rates.org/australia/sales-tax

Who should collect VAT here? Envato (10% VAT) or authors/sellers?

454 posts
  • Bought between 10 and 49 items
  • Exclusive Author
  • Has been a member for 3-4 years
  • Microlancer Beta Tester
  • Referred between 1 and 9 users
  • United Kingdom
Gareth_Gillman says

If Envato is an Australian-based company then they should add 10% VAT to all prices – http://world.tax-rates.org/australia/sales-tax Who should collect VAT here? Envato (10% VAT) or authors/sellers?

You pay VAT when you are supplied goods or services by another company, Envato wouldn’t collect VAT unless they are supplying goods / services to someone else.

It’s up the receiptant of the VAT to pay it in their country of residence, mine being the UK

FD is right though, you will only pay VAT on income from a EU source, so it wouldn’t be needed in the op’s case.

Do still speak to a tax professional as they will be able to advise much better than someone on the internet (as they will know your countries laws).

54 posts
  • Has been a member for 4-5 years
  • Slovenia
  • Bought between 10 and 49 items
  • Exclusive Author
psvent says

I think VAT policy is the same all over EU so I think the same rules apply as here in Slovenia.

Actually having an VAT ID and have to charge VAT is not entirely voluntary. In Slovenia the limit of having to “enroll” into the VAT system was raised from 25.000 € to 50.000 € of annual revenue. So if during a calendar year you exceed this limit you HAVE to start charging VAT.

But you have to charge VAT only when you invoice in your country, if you invoice to another country (even within the EU) you do not add VAT to the invoice.

So being in the VAT system is actually beneficial if you for example make most of your money from Envato, because you essentially get any VAT you pay for services or products in your own country back.

Fo example if in slovenia I buy stuff or pay services for 500,00 € + 20% VAT = 600,00 €, and would make all my income from Envato, I would get those 100,00 € of VAT back from the government.

Furthermore if you have a valid VAT ID, even if you buy stuff from an other EU member country, where you pay their VAT, with the proper documents, you can even get that VAT back. Usually web stores and such require you to send some sort of documents to prove that you have a valid VAT ID.

But you have to check the rates and limits in your own country. I don’t know how it is in other EU countries but here if I would exceed the limit before voluntary enroll for an VAT ID there would all sorts of complications with the TAX monsters.

63 posts
  • Author had a File in an Envato Bundle
  • Bought between 10 and 49 items
  • Elite Author
  • Exclusive Author
  • Has been a member for 3-4 years
  • Referred between 10 and 49 users
  • Sold between 250 000 and 1 000 000 dollars
Diabolique says

I know how VAT system works :D The point is if you are buying a theme on Themeforest, then who is a seller? Envato or me?

419 posts
  • Has been a member for 4-5 years
  • Repeatedly Helped protect Envato Marketplaces against copyright violations
  • Exclusive Author
  • Bought between 50 and 99 items
  • Referred between 1000 and 1999 users
  • Europe
  • Sold between 10 000 and 50 000 dollars
  • Microlancer Beta Tester
readactor says

envato. that is written on invoices. :) also, when you withdraw the money, the sender is envato.

54 posts
  • Has been a member for 4-5 years
  • Slovenia
  • Bought between 10 and 49 items
  • Exclusive Author
psvent says

Envato is invoicing the buyers so I guess that makes Envato the seller, right?

When I was working with oDesk (which is the same base financial flow) I’ve spoken with the tax office and I was told to “invoice” oDesk (basically just in invoice for my archive) and that’s it.

So in this case you “invoice” Envato, and because Envato is in Australia, you don’t include VAT.

by
by
by
by
by
by