Posts by Sealord

159 posts
  • Has sold $5,000+ on Envato Market
  • Sells items exclusively on Envato Market
  • Had an item featured on Envato Market
  • Has referred 50+ members
+3 more
Sealord says

Author is company from Germany. Customer is company also from Germany. Both are active VAT payers and have valid VAT ID. How is going Author from Germany get VAT from this kind of sale?
This is a typical B2B transaction that requires no VAT (with current and upcoming (2015) EU VAT rules)
No matter if the author is a self employed seller or sells via a EU-/Non-EU online marketplace.
159 posts
  • Has sold $5,000+ on Envato Market
  • Sells items exclusively on Envato Market
  • Had an item featured on Envato Market
  • Has referred 50+ members
+3 more
Sealord says

Are there other countries that have similar tax laws as EU VAT ?
You can check it on this website (click on map)
http://www.ey.com/GL/en/Services/Tax/Worldwide-VAT-GST-Sales-Tax-Guide---Country-list
I do not check all countries but Norway (European Country but not EU member) has similar VAT rules for non-resident companys since 1 July 2011, or South Africa since 1 April 2014.
159 posts
  • Has sold $5,000+ on Envato Market
  • Sells items exclusively on Envato Market
  • Had an item featured on Envato Market
  • Has referred 50+ members
+3 more
Sealord says
http://www.meridianglobalservices.com/blog/2013/11/22/EU-VAT-Changes-for-E-Commerce-in-2015-Will-they-affect-you
Referring to this site, Envato as non-eu based business had to calculate VAT on e-services since 2003 and not only from 2015.

Before 2015
EU business selling electronic services to EU consumers = charge VAT rate where the seller is based

Non-EU business selling electronic services to EU consumers = charge VAT rate where the consumer is based

After 2015
EU business (Change) Selling electronic services to EU consumers = charge VAT rate where the consumer is based

Non-EU business (No Change)
Selling electronic services to EU consumers = charge VAT rate where the consumer is based

This is the same what’s described here on the official website of the EU
http://ec.europa.eu/taxation_customs/taxation/vat/how_vat_works/telecom/index_en.htm#legislation

If that is indeed the case, then it becomes clear why Envato suddenly insists not to be the seller!

159 posts
  • Has sold $5,000+ on Envato Market
  • Sells items exclusively on Envato Market
  • Had an item featured on Envato Market
  • Has referred 50+ members
+3 more
Sealord says

In the UK (not sure about the rest of EU) you only charge VAT if the buyer is the UK or the EU, If a buyer can provide a VAT number then they aren’t charged VAT. The VAT is charged at your countries VAT rate and sent to the tax department every 3 months. You would only charge VAT if you were registered (in the UK if you earn over £77k then you need to be registered).
It looks like the HMRC has changed this in the UK two years ago
http://www.kevinbeare.com/thoughts/faqs/overseas-company-do-we-need-register-vat-uk
159 posts
  • Has sold $5,000+ on Envato Market
  • Sells items exclusively on Envato Market
  • Had an item featured on Envato Market
  • Has referred 50+ members
+3 more
Sealord says

I cannot see how envato or anyone else is liable for pre 2015 sales btw.
VAT regulations for digital goods trade has been around for a few years in some countries.

Just two examples:
VAT on foreign electronic B2C e-services in the UK
http://www.kevinbeare.com/thoughts/faqs/overseas-company-do-we-need-register-vat-uk
VAT on foreign electronic B2C e-services in South Africa
http://www.vatlive.com/africa/south-africa-imposes-vat-on-foreign-electronic-b2c-e-services-in-2014/

And the EU changes from 2015 are not so new, the new changes only affect trade within the EU states. For non-EU companies this VAT scheme is already is in place since years. I doubt that Envato in the role as seller has itself registered for all these VAT schemes in the past years and that could lead to heavy tax troubles for them.
159 posts
  • Has sold $5,000+ on Envato Market
  • Sells items exclusively on Envato Market
  • Had an item featured on Envato Market
  • Has referred 50+ members
+3 more
Sealord says
What about the VAT for B2C transaction into other countries besides the EU?
Here you can see the worldwide VAT/GST/Whatever rates per country
http://www.vatlive.com/vat-rates/international-vat-and-gst-rates/
Unfortunately one can not be seen in this listing whether digital goods currently also taxed in other countries outside the EU or if there are similar changes in 2015
159 posts
  • Has sold $5,000+ on Envato Market
  • Sells items exclusively on Envato Market
  • Had an item featured on Envato Market
  • Has referred 50+ members
+3 more
Sealord says

Is there a link or something where we can read about this? Because all I find on the internet is an author has to pay VAT in his/her own country.
So it’s up now, but the regulation will change on 1 January 2015 for EU citizen
More information for EU citizen:
http://ec.europa.eu/taxation_customs/taxation/vat/how_vat_works/telecom/index_en.htm
159 posts
  • Has sold $5,000+ on Envato Market
  • Sells items exclusively on Envato Market
  • Had an item featured on Envato Market
  • Has referred 50+ members
+3 more
Sealord says

I know specifically, in the US, if anything doesn’t look right, the IRS puts the burden on you to prove that you’re not doing anything illegal. It’s called an audit.

In Germany as a freelancer or (small) company you can receive also an audit by the tax office. The trigger for such an audit is diverse. First, the taxpayer may be selected at random or is simply the next in the turn. There can be strongly fluctuating profits, foreign transactions, recurring clarification of your freelancing status or other tax-matters can act as a base leading to an audit here.

159 posts
  • Has sold $5,000+ on Envato Market
  • Sells items exclusively on Envato Market
  • Had an item featured on Envato Market
  • Has referred 50+ members
+3 more
Sealord says

The reviewer needs a second opinion, usually the reviewer is uncertain about the item price and/or the item quality.

159 posts
  • Has sold $5,000+ on Envato Market
  • Sells items exclusively on Envato Market
  • Had an item featured on Envato Market
  • Has referred 50+ members
+3 more
Sealord says

In OpenOffice a sidebar like this is a simple image (or several images) formated as background with text overflow, should be similar in MS Office Word.

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