February is here. Good bye good old comission system.
Correct me if I am wrong, but don’t authors need the money flow as proof of ones invoices? I always back up my invoices with a proof of the exact money flow, but with these new invoices for each and every sale I cannot do that?! Same with the author fee. I never pay any money to envato for this fee, so how can I use this bill without any money flow?
Now imagine paying VAT. Becoming direct seller makes every Envato author VAT responsible. There’s no money flow in your bank account to prove that you paid VAT…
Mammothology I believe you misunderstood the whole SWIFT thing. Nothing is changing regarding the SWIFT, they just showed us how SWIFT fees will be issued in statement tab and that SWIFT fee will be included in “monthly service fee invoice”. This whole thing applies only to authors who withdraw their earnings through SWIFT.
I have one important question as I didn’t see it mentioned anywhere in the blog posts which were released today. Maybe I just missed it.
Will authors get any documents reporting (proving) the fact that VAT for the purchases from EU non-business clients was paid? Let’s say monthly summary.
When you make EU author direct seller, he is obligated to pay the VAT, he has to register his VAT ID and he has to submit VAT tax declaration few times a year (in my country, for example every month or every quarter).
Now tell me how the hell should I solve this impossible situation, if Envato is going to pay the VAT. I can’t put this on VAT tax declaration.
I see only 2 solutions:
1. I’ll keep invoicing Envato as before, once a month. Regular VAT report from Envato would be proof that I don’t need to register for VAT. Also I use software which generates invoices directly from bank transactions, I get one transaction from Envato per month, I can create only one invoice for this transaction. There is only one way how to invoice this.
2. I’ll find a way how to do accounting in different software, I’ll start from scratch. I’ll invoice every damn sale, I’ll register for VAT, I’ll pay VAT (which means it will be paid twice, by me and Envato), I’ll submit VAT tax declaration, because I have proof of paying VAT in my bank statement. In the end this will cost me a lot of time and another big cut from my earnings.
I asked one friend accountant for her opinion about this Envato mess. She couldn’t help me, she said I should ask Financial Directorate of Slovakia. I did, they couldn’t help me either as they evaluated the relationship between author and Envato “unclear”.
Thank you Envato for putting a lot of people in stress…
Can someone explain something here, if an author is from the EU and the buyer is an EU non-business buyer, then there will be additional amount added to the list price? Won’t this make purchasing from EU authors less attractive, since those buyers could rather purchase a similar item from another author in a non-EU country and pay less?
Higher prices will apply only to non-business EU buyers, no matter who they buy from, therefore all envato items will be pricier for them. The only solution is to move outside EU (or state in your account that you are not from EU which might not end well if they find out).
Price = Price of your project minus Buyer’s fee (20%)
I’m not worried about past VAT. Envato was and right now still is a direct seller. Everything says it, money flow, the fact we don’t know who buys our projects, no invoices with author’s details, basically everything except their ToS…
But as things change, I’m getting worried about VAT in the future. If Envato puts our details into invoice, we might be named as suppliers and envato as just intermediary – then, in that moment, we are direct sellers and we already have to be VAT registered (at least this is how it works in my country). But again, Envato wants to pay VAT for us, making things even more complicated.
Right now I need to find 2 answers:
- who we represent on those invoices and if we are supposed to be suppliers, where is stated they have permission to sell in our name
- if I need to be VAT registered when I’m direct seller but Envato pays VAT for me
Guys, it has been said that the VAT will differ for every buyer, because it will depend on buyer’s country. For me it is meaningful, that EU flag is gone. You can’t look at all those countries as to one whole piece, not from 2015.
So far I’m not worried about the VAT situation, I believe in Envato, they will handle this. I’m worried about how many buyers are we going to lose, since they will be required to specify some personal info + projects will be pricey for them. I truly hope we won’t lose any buyer outside the EU.