267 posts What we do in life, echoes in eternity!
  • Has referred 50+ members
  • Has sold $125,000+ on Envato Market
  • Has collected 100+ items on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
+2 more
Prothemeus
says

Because I had wondered about the VAT issue myself, I had contacted my accountant who in turn contacted a tax specialist. Long story short, the tax specialist has read the terms and conditions of TF and says that I need to pay the Value Added Taxes and that I need to send every buyer an invoice ánd need their personal information.

This is strange because there’s no way to track who purchased a theme and due to Envato’s privacy policy, I don’t have any access to personal information.

Is the tax-specialist over-complicating things or is he right? I’m hoping that I can get an in-depth (un)official response from anyone (but in particular Dutch authors) to clear this matter once and for all.

Thanks!

599 posts
  • Has been part of the Envato Community for over 5 years
  • Has sold $1,000+ on Envato Market
  • Won a Most Wanted contest
  • Has been a beta tester for an Envato feature
+4 more
kriskorn
says

I think you pretty much can’t get an answer. I once opened a support ticket and all I got from back-to-forth messages, that it is my duty to figure out how the tax policy works in my country. And as your tax specialist stated, that you need to track down the buyers etc. In my opinion you’re pretty much (a bad word here). :/

250 posts
  • Has sold $10,000+ on Envato Market
  • Has collected 50+ items on Envato Market
  • Sells items exclusively on Envato Market
  • Has been part of the Envato Community for over 2 years
+2 more
Go-Themes
says

corrected*

267 posts What we do in life, echoes in eternity!
  • Has referred 50+ members
  • Has sold $125,000+ on Envato Market
  • Has collected 100+ items on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
+2 more
Prothemeus
says

Everybody has to pay income tax, this question in particular is just about the VAT.

2229 posts
  • Located in Europe
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
  • Participated in a focus group or interview to improve the user experience on Envato Market
+11 more
revaxarts
says

My accountant had the same doubt but since Envato pays me and they sell the products (in a legal manner) You don’t need any info from buyers.

1885 posts Multimedia Artistry
  • Elite Author: Sold more than $75,000 on Envato Market
  • Has been part of the Envato Community for over 4 years
  • Contributed a free file of the month
  • Won a Most Wanted contest
+4 more
dnp_theme
says

All money operations are done by the Envato, your clients get invoice from Envato, your money come from Envato, refunds are operated by Envato. That’s pretty much all I know.

With other words, you externalize accounting, financial and many others to Envato for your online business.

176 posts
  • Located in United Kingdom
  • Sells items exclusively on Envato Market
  • Had an item featured on Envato Market
  • Taught a course or tutorial on Tuts+
+4 more
mikedidthis
says

From what I understand, you don’t need to worry about VAT unless you pass a certain amount. You do need to declare your monies from TF to pay tax though :(

In England, this is the example we are given: http://www.hmrc.gov.uk/guidance/selling/examples.htm#c

267 posts What we do in life, echoes in eternity!
  • Has referred 50+ members
  • Has sold $125,000+ on Envato Market
  • Has collected 100+ items on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
+2 more
Prothemeus
says

Thanks for the responses guys, let’s keep the comments rolling as this might help anyone now or in the future.

24 posts
  • Has been part of the Envato Community for over 2 years
  • Sells items exclusively on Envato Market
hexahedron
says

Note: I’m not Dutch.

Almost all countries exempt VAT collection for exported goods/services.
Since you’re exporting services outside the EU (Envato is based in Australia), you’re not supposed to collect VAT. Keep the invoice as evidence.

Also, see this.

933 posts
  • Helped protect Envato Market against copyright violations
  • Power Elite Author: Sold more than $1M on Envato Market
  • Has been part of the Envato Community for over 4 years
  • Has sold $2M+ on Envato Market
+6 more
Dream-Theme
says

Off topic: Same old story. It seems income from Envato marketplaces confuses accountants all over the world :)

On topic: try to find a friend who sells stuff on AppStore or Google play. I’m 99% sure that he can give you relevant reply and advice you a competent accountant.

by
by
by
by
by
by