For UK users, read the last paragraph here. https://www.gov.uk/government/publications/vat-supplying-digital-services-to-private-consumers/vat-businesses-supplying-digital-services-to-private-consumersDigital portals, platforms, gateways and marketplaces If you supply e-services to consumers through an internet portal, gateway or marketplace, you need to determine whether you are making the supply to the consumer or to the platform operator. If the platform operator identifies you as the seller but sets the general terms and conditions, or authorises payment, or handles delivery/download of the digital service, the platform is considered to be supplying the consumer. They are therefore responsible for accounting for the VAT payment that is charged to the consumer.
Thanks! Now that’s an official ruling from the UK. Glad you found that, it’s official. Would be useful in determining prior VAT liability as well. Nice to finally see a specific well explained ruling from the UK on official VAT “who’s the seller” liability. Very likely the ACCC would concur, worth looking into.
The folks at https://www.accc.gov.au/ may be able to help clarify things; if you (both envato and authors) explain the situation to them; they’re the FTC-equivalent for Australia, and may be able to make a ruling/provide official insight into who’s categorized as true end point seller, based on how things work. It’s probably good to get clarification from official tax/regulatory agencies, to help figure things out correctly.
I’m a top buyer, and buy exceptionally “the best” here, gfx, video, flash, AEPs, templates. If it doesn’t stand out and make me think “WOW”, then i skip it. Fortunately there’s a lot of ‘wow’-quality content here, so i buy a lot.
I’d check with both euro VAT tax authorities, ACCC and personal tax CPA/accountant to check. Best wishes for getting it all straight; sounds confusing.
relevant Star Wars quotes:
“I’ve got a very bad feeling about this…”
“I feel a disturbance in the force, something I’ve not felt since….”
“in deep kimchee this situation seems”
Agencies like the ACCC and FTC are set up specifically to provide consumer protection; which is why I encourage contacting them if needed. Businesses have a legal responsibility and obligation to honor standards and practices in place as “general practice in place at time of sale”, which supersedes subsequent tos or other changes. Otherwise they get fined.
what counts is what was seen/observed to help make buyers make purchase decisions at time of purchase. there was no additional charge for updates nor support when I bought things, which is a big reason Why I bought. like the theme companies that went from lifetime to annual, they still grandfathered in original buyers as lifetime, since that’s what FTC/trade law requires. you can’t sell under one set of rules, then start charging customers for what had originally been provided / included as part of purchase, subsequent to purchase. Ask any trade-law attorney who’s familiar w/FTC/ACCC/other applicable legal statutes.
what counts legally, from an FTC/ACCC perspective, is what business standards were in place at original time of purchase, point-of-sale (check w/any trade attorney), including license terms and what was seen as ‘general practices’ here, Not what’s changed via tos/changed license terms, subsequent to original purchase.
many of us spent thousands here seeing that unlimited (within reason) support and updates were INCLUDED when we Originally bought. So that’s the precedent condition and all Grandfathered purchases must be honored with what was in place when we originally bought, as ‘observed standard business practice’ (whether or not spelled out in current tos; the buyer’s standard experience is what holds up in trade law court).
Envato’s free to change their business model whenever they want, but that only applies for New purchases made under New tos/terms. Grandfathered purchases must be honored w/update/support policy that was in place at original time of purchase (or envato will likely get a lot of ACCC complaints by disgruntled customers). Doing what’s fair and honest is important.