RonLub saidWhy is that? It would really make things easier if we could add information across all of the invoices.
Hi, why my additional message (invoice footer) is not showing on the invoices?
The footer only appears on invoices where the buyer and the seller (author) are from the same country. It is always the author’s footer copy that shows on the document.
I hope that helps!Cheers, Ronja
For most sales taxes (unlike EU VAT), a statement about the tax is only relevant to buyers in the same country. Showing the footer only to these buyers minimizes confusion.
For European Union buyers, our imminent VAT release will turn invoices to those buyers into fully compliant EU VAT tax invoices with Envato’s VAT details. So that case will be treated separately (and shortly).
You are definitely allowed to offer customizations, installations, etc. You just can’t say that it’s included in the purchase.
In the last year we’ve had more and more authors doing things where they say “Go buy my item, and then give me the purchase code and I’ll give you …”, and it’s anything from $1000 worth of free files, to free installations and customizations, to all kinds of incentives. They use the purchase code system that was intended for item support to make these things possible. It means you can artificially game things like the popular files page to have something appear high which isn’t there on its own merits, but because there was some huge freebie offered offsite that some buyers will be completely unaware of.
It’s fine if you say things like “After you buy my item, you can also buy …”, or do general promotions.
Hope that helps!
In this blog post, you do not show how the invoice looks for the buyer. You show a credit note, instead. Looks like you linked to the wrong image. https://help.market.envato.com/hc/en-us/articles/204159940-A-Buyer-s-Guide-to-Your-Statement-Document?_ga=1.248570951.1185124546.1415579262 Please fix that, else it will lead to a lot more confusion.
Good catch, we’ll get it fixed!
Hi everyone, thanks for the questions and follow-ups!
First of all, I’d like to thank you that you are so active on forum and you have such a great ideas how to help authors with this complicated matter. This document should help a lot. If I could add something – maybe information about VAT collected for net sales? It would help my accountant to prove to our EU IRS that VAT is paid in one document, not on every invoice. It’s just an idea
You’re welcome, as you say it’s complicated stuff – and I wanted to make absolutely sure I was across it all! Happily natman, kingdog, the community team and mods are helping me collate questions and answers – makes it a lot easier!
With the VAT collected for net sales, my understanding is that it’s important we don’t show it on your documents because it’s not in your name or your obligation. But I will double check, maybe even there could just be a reference restating that for clarity.
Thanks for the update. I hope there will be an XML export of all information from invoices including customer contact and company details. Bulk download of PDF documents won’t be any help. XML can be easily changed and imported directly into any decent accounting system.
Thanks ait, that’s an interesting suggestion and one I hadn’t thought of. Do you have any examples of import tools for accounting systems that you think this data would be used for. Would help a lot to see some examples to base any analysis we do on.
I have a question, the earning calculate are very hardly right now. Maybe you can add a new option to advanced search from My Statement page?
I mean select item : x theme, xx theme, xxx theme like this :
Its very easy for me and for my partners and if you have a team.
Cool idea, will add to a list we’re making of statement enhancements.
@Collis: is there any way we can get “back” a simple Statement, which shows (only) exactly how much we actually earned (after all fees and what-not)? Now, even if we use the “sales” filter, it still shows the amount before author fee gets deducted; statement page is cluttered with 2x”items sold” number of lines which are basically useless on their own because they just repeat and could easily fit in a single column in the table, instead of taking up row after row… Also, it became a part of the data available in API, so third-party tools we use are also becoming cluttered and unusable. Any chance to see some improvement on this?
This might be a bit tricky because of the way the statement page has been designed in the system. We’ll see what we could do, especially with respect to linking through to the API – as I think this is the kind of view that is best done by an API tool.
First of all, I’d like to thank you that you are so active on forum.
Unfortunately I still see some negative side effects of your decision to switch to Platform model.
1. You should be aware that deduction of fees is something that can be reported by business Authors only. AFAIK this is similar in most EU countries:
(this is not related to VAT! It’s related to income tax only)
Author = business: Item price $80 – author fee $30 = net income to report $50 Author = individual: item price $80 – useless piece of paper worth 0 = net income to report $80
Is this possible to create two different types of accounts on Envato for business authors and individual authors with slightly different model for invoices and fees?
2. Are you going to add VAT to Author Fee for non business Authors?
3. Could you please provide a list of EU Directives which are related to your new Author Terms 22 and 23? It could be much easier to talk with government authorities and IRS showing them “pure law”.
I have found these directives:Article 28: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2006:347:0001:0118:en:PDF http://europa.eu/legislation_summaries/taxation/l31044_en.htm http://europa.eu/legislation_summaries/taxation/l31057_en.htm 4. Is there any schedule/timetable/roadmap? When all these changes related to VAT are going to be fully functional on Envato Market? When are you going to issue VAT invoices to customers and charge VAT?
Hey Cocomero, thanks for the kind words – it’s actually been good for me being back in the forums – getting my forum post count up Wish it wasn’t about tax though!
To your questions:
(1) I understand a few authors have said they will have problems as individuals selling. This really depends on your local country requirements. It’s best to talk to your accountant or tax advisor on the best way to sell with Envato.
At this time we’re working on a reseller model for authors who want to sell via Envato Bundles, that might help some authors. But at the moment, no plans to do so via Envato Market.
(2) There won’t be VAT on the author fee because for EU VAT Purposes, Envato acts as a supplier in the middle. This means that for VAT purposes our invoice for an author fee is immaterial, because as far as the VAT is concerned the author supplied to Envato, and Envato supplied to the buyer.
I explained this in my post about the EU VAT changes here – http://themeforest.net/forums/thread/author-information-about-eu-vat-changes/160108
It’s a very strange side effect of the EU VAT laws, and is only relevant in the EU.
(3) There’s a lot of information in the explanatory notes from the EU about Article 9a. You can find them here: http://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/how_vat_works/telecom/explanatory_notes_2015_en.pdf in pages 22 onwards. It goes over lots of scenarios where a platform or app store could be deemed to be taking part in the supply and take on the VAT responsibility and invoicing.
(4) We have an internal timetable, but I’m not ready to release it because we’ve had a couple of delays already along the way. We’re working on it as a high priority though because the longer we’re not collecting EU VAT from buyers, the longer it is coming directly from Envato!
OK I think that’s it for now! Will stop in again in the next couple of days for any fresh questions/comments!
You can read the updates to the terms here:
Collis, dropbox links are not working (404 error) http://lpd-themes.d.pr/y9mhThank you
Oh thanks for letting me know! Weird
OK I’ve moved them to Droplr and fixed the links. See if that works! Sorry about that!
Thanks Collis! You know what it would be really awesome with this tool? To show out different withdrawals.. I’m not sure how it would look, but think of author teams – for example, we’re a team of two guys located in two different countries. If we could alter that document to show that two different withdrawals are being made in two different places, it would help a lot. Of course, this is just an idea and it needs to done in a way that would be indeed useful for authors.
Oh that’s an interesting idea, so you mean show some kind of details of the payment details used for the withdrawals?
Earnings Summary View Awesome! Will does work with past sales as well? I don’t understand if it’s a tool which we can use to create past and future papers like this, or if it’s something automated..
Hey Krown, our plan is to make it a tool you can run over any period and generate a document for that period. So you could use it for a month, or a quarter, or a year – depending on your needs.
It’s still in planning though as I told the team we should take a couple of weeks to make sure we collect author feedback so that it’s actually useful (as that’s it’s only purpose).
So once we’ve collected feedback, we’ll do a full feasibility analysis and then get to building!
I’m back with more updates on two fronts – tools and terms for the VAT release. I’ve closed down the two previous threads on statements/invoices/vat, but left the more general business model discussion open. You can find them here:
- New Statements & Invoices (Now Closed)
- Author Information about EU VAT (Now Closed)
- Envato Market – The Platform (Open)
Commercial Documents and Financial Tools
In my calls and discussions with authors, one thing has been quite clear – we need to further improve our tools around the new statements, invoices and documents to meet their needs.
Here’s what we’re working on:
1. Earnings Summary View
Lots of authors have expressed that it’s hard for them to match up activity on their bank account and their Envato Market earnings account given how many individual transactions are happening. So we’re looking at creating a summary document that reflects the changes in your earnings account only (not the deposits account).
We’ve created some samples of the earnings summaries:
This document will show your total income (sales and referrals) in a given period, minus all fees, to give a net change to your earnings balance. It also shows what you do with those earnings – withdraw them, or spend them.
If you don’t spend your earnings to buy items, you should be able to match up your net earnings to your withdrawals to your bank statement, and with this document quickly connect that back to the total sales and total fees.
It’s purely a document to help authors with record keeping, particularly to have an official Envato document that lines everything up clearly. If there are additional suggestions you have to make the document more useful, please let us know in the comments.
2. One-size-fits-all Sales Taxes Additions to Invoices
For countries outside of the EU which have a sales/transactional tax, we’re adding the option for authors who hit the relevant sales thresholds in that country to add their business number and/or tax number, as well as a line expressing that sales to or within that country are inclusive of sales taxes, where applicable.
We’re also currently working to put together more information for authors in the US and Canada in particular on sales taxes, and useful information about thresholds, what states tax digital goods, and other things to know. Outside the EU, the amounts involved are generally small, but there are important practical issues to understand.
3. Additional location information on statementsWe’ll be adding information such as state/province, zip and country to statements so that when you download the CSV of your statement you can quickly summarize your sales to specific regions (for example for calculating a relevant sales tax obligation).
4. Bulk Download of Invoices and Documents
We sell something every few seconds here on Envato Market. That means there’s a lot of documents to go through. Along with the summary mentioned above, you also have the statement you can create in CSV form, and finally we’re creating a bulk download tool for documents so you can grab relevant documents in one shot.
Normally we don’t give too much detail of what’s coming as timing is unpredictable, especially at the moment where a lot of focus is going to VAT. But we are working on these things as a matter of urgency as we know there’s a lot of open questions from authors at the moment.
EU VAT related changes to Terms
We’ve got our draft updates to the terms which will be rolling out on the day that the VAT collection features are deployed.
Just for clarity, as I’ve mentioned in other threads, although we’ve not deployed the collection of VAT yet, this obligation already sits with Envato. For more info on this, read the Author Information for VAT thread.You can read the updates to the terms here:
In particular in the author terms, clause 22 covers taxes and EU VAT specifically and clause 23 more explicitly covers that Envato will issue invoices.
We’ve closed down the recent threads and global sticky’ed this thread which we’ll be monitoring to answer questions on.
I’m still organizing calls with authors, particularly in the US and Canada at the moment, and if it’s helpful I’m happy to have a chat – email me (collis[at]envato) to organize a time! It may take a little while as I got a lot of requests last time!
And of course we have firstname.lastname@example.org set up to discuss specific cases and questions you might have.
On the subject of faster withdrawals, the ultimate place I’d love to see one day is what Stripe offer. I met with one of the founder brothers about their offering – where the buyer makes a payment and it’s split as it comes in, so that part goes to the author, and part goes to the marketplace. But at the time, for receiving payments, they only supported countries that cover about 30-40% of our author base (which is very dispersed).
Still, pretty cool system, and one I’m keeping an eye on. I suspect it would be a massive project to put it in of course :-/