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.
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.
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). :/
Everybody has to pay income tax, this question in particular is just about the VAT.
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.
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.
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
Thanks for the responses guys, let’s keep the comments rolling as this might help anyone now or in the future.
- Power Elite Author: Sold between 1 000 000 - 1 999 999 dollars
- Has been a member for 3-4 years
- Author was Featured
- Author has had an Item Featured
- Author had a File in an Envato Bundle
- Exclusive Author
- Referred between 200 and 499 users
- Bought between 10 and 49 items
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.