How did you handle your accounting up to now when you say you have to make no changes? Did you always write the full list price as your income and not only your commission? That would change now…
I withdraw every two month and write an invoice to Envato with the date of the withdrawal (15th of Month). So I have six invoices, evertime is Envato the receiver, with the amount I got on my bank account
That is obviously wrong if you now agree that you are the seller and that you pay an author fee to envato. Seriously, this seems all very wrong what you say here… How can you be the seller and pay envato, when you declare only the money you get from envato as the income? From what money do you pay the author fee expenses then?
Sorry, I’m no tax specialist and can’t give your the reason. What does your accountant say to this question?
hmm this seems to be reasonable. I’ve actually read the German version and didn’t understand it.He actually pointed me to this article from the Austrian Tax Authority (BMF):
Vermutung zum LeistungserbringerBei elektronisch erbrachten sonstigen Leistungen und bei über das Internet erbrachten Telefondiensten wird vermutet, dass ein an der Leistungserbringung beteiligter Unternehmer im eigenen Namen aber für Rechnung eines Anderen („Anbieter“) tätig wird und somit als Leistungserbringer gegenüber dem jeweiligen Kunden anzusehen ist, wenn die Leistung über ein Telekommunikationsnetz, eine Schnittstelle oder ein Portal (zB über einen Appstore) erbracht wird. Diese Vermutung ist unter folgenden kumulativen Voraussetzungen widerlegbar (Art 9a VO (EU) 282/2011 idF (EU) VO 1042/2013):
and I’ve linked to the article 9a.
Now let me “translate” your mentioned article so even I’ll understand:
For the purposes of this paragraph, a taxable person [ENVATO] who, with regard to a supply of electronically supplied services [ITEM], authorises the charge to the customer [BUYER] or the delivery of the services, or sets the general terms and conditions of the supply, shall not be permitted to explicitly indicate another person [AUTHOR] as the supplier of those services.
Even after reading this paragraph for three times I don’t get it
Have never heard anything about my social media network promotion
I think that depends from country to country. In PL if one is direct seller than even if Envato collect and pays VAT to MOSS for B2C EU transactions it’s still required to register all transactions (B2B) and issue invoice with VAT 0.
I don’t know the law of other countries and my answers are for Austrian based authors (though other countries act similar).
Even if Envato is allowed to do it this way I strongly suggest to switch to a commision based model as authors don’t get confused and it’s more transapraent for all tax authorities. After the 1st of January there’s also no drawback for them (as it is right now)
Hi revaxarts, thanks for your feedback. Can I know if you work alone or in teams? I wonder how they will be managed payments for workgroups.
I’m a one man show
is this the same accountant that envato use?
I don’t think so
If you are a HC business buyer or an author, then it would matter, so I wouldn’t rule that out.
Don’t know what HC is. Maybe Hard Core?
if Envato issues invoices in our name with our company data and VAT details and regards buyers VAT# (UID) for Reverse Charge (VAT less) transactions
lg aus Wien
- we have to provide every single buyers VAT# (UID) on our “Zusammenfassende Meldung” for the finance?
- we got all the information to proof validity of VAT# and Company information?
no, we only have to proof Envato is taking care of the VAT. I don’t know which VAT ID is on the buyers invoice.
My accountant sad I don’t have to do anything else as long Envato will handle the VAT. Otherwise it would be a complete mess
purethemes saidThey probably pay it via MOSS to one country. Don’t think the report each sale but I can’t tell exactly
Do you maybe know/asked how does paying VAT by Envato looks like? Do they report to each required country that user XXX sold this much and we collected this much VAT so here you go, or do they take it as one payment for each country MOSS from all authors?
Question is, what about authors who collaborate and make more than one withdrawal to different accounts?Sorry, no idea but I guess Envato brings a solution.
What does it also mean that they can send invoices in our name? Do we have to now report each single invoice to our Tax office or can we still report just one payment each month from Envato?No, nothing changes for you. Just declare the monthly payment as income (at least what I have to do in Austria)
I just came back from my accountant and had a great conversation which relieved from the burden.
Basically Envato is doing it “just right” from the 1st Jan. `15 and used some “gray area” in the past. In the end I don’t have to fear anything and shouldn’t expect any changes on my accounting in the future as long as Envato will handle the VAT payments (what they will do)
The only thing what changes is the increased item price for EU based consumers or business without VAT ID.
Here are the (short) answers to the questions:
What Envato has to do when I’m the seller from a legal point of few in the EU?
They have to put us authors on the invoices (Article 9a on page 88 in this document)
Can Envato pay VAT in my name even when I gave permission (ToS)?
Yes, see 1st answer
Can Envato send invoices in my name even when I gave permission (ToS)?
Yes, see 1st answer
Which information should a buyer get from me as a seller on this invoices?
This is pretty flexible but the invoice should mention that the author is the seller
What are legal definitions of business transactions that can be conducted and apply to what we have here: author -> Envato -> buyer and how can this be classified?
Basically Article 9a describes it (see first answer)
Can Envato act as a seller for some transactions (with EU VAT) and as something else for other transactions to buyers outside of EU?
Envato is not the seller
Can Envato be the (re)seller for VAT purposes and not be the (re)seller in any other case?
Sorry my accountant wasn’t sure with this question
Do I have to get notified instantly with buyers details when a purchase has been made?
Depends on the ToS but you should get notified
Can Envato hold back any buyer information (which is required for a legal transaction)?
Yes, as long Envato will handle the transaction (no buyers email address for you)
Can Envato give past transaction (before 1st Jan 2015) details to authors (sellers)?
No if the ToS didn’t mention this. This would probably break some privacy law (my assumption)
Can Envato set prices on its own?
Yes, if stated in the ToS
Do we sell licenses or items?
according to the ToS we sell licenses
How much does it cost to move your business to an offshore country (and which)?
Woulnd’t make much sense with the new EU VAT law. This is one of the reasons the law was made
Another Important questions is about past VAT. This is where Envato used some kind of “gray area”. As they stated we are the seller they were not reliable for paying VAT – we were.
But as long as the didn’t give us any information about the transaction we were not able to pay these and are not responsible for them either. That sad Envato did everything right from their financial point of view. If they stated they were the seller and this is a commission based system (which it obviously is) they would have to pay the VAT.
From the 1st of Jan it would be better that Envato acts like a commission based system (officially) – simple because it’s more clear for us authors and they don’t have to pay anything more
Please note this statement is based on the answers of my accountant and my own opinion and is in line with Austrian law and could be differ from other laws
^ the user profile is back. No idea what happend.
They were re-enabled around an hour agoThis is one of the reasons purchase codes aren’t voided when an account is disabled. There are many legitimate reasons why accounts will dip in and out of an enabled / disabled state
3 purchasecodes – which should be disabled – are still active!