Hello, a Microstock group newbie here (although i've been selling stock animation for the past 4 years).

So i have a question regarding stock sales bookkeeping that my bookkeeper keeps on bugging me about.
He says he needs to know the country of origin for each buyer of an individual clip. I'm pretty sure he doesn't need this information,
and luckily most sites don't even provide it (except for getty as far as i know). But im having some trouble getting him to accept this since i
cannot explain him how this construction works. I don't get much further than saying that the stock agencies (all US based) are the only
relevant legal/financial entity we have to deal with.

Is there anybody here that can explain to me in somewhat legal terms why this information is not required for running a proper microstock bookkeeping?

Any help is much appreciated!

My logic is that you are the supplier to agencies and payed by the agency not by the end image buyers. All you need to know is where is the agency located, you are supplying them, they are paying you, you have no contact, contract, receipt or anything of that kind with end buyers.

Is your accountant worried about VAT in Europe?
That would be an issue if you are selling directly, but if you're selling through agencies, it's their responsibility.

Maybe time to switch to an accountant?

This. You aren't selling anything to a client.

You are allowing an agency to license the work and pay you. You have no direct contact with clients or even knowledge of who they are necessarily.

You are being paid by the agency not the person who ends up using your work (they are the agency's customer not yours).

A couple of agencies have been trying to make it look like you are in control, (Envato springs to mind) but it is transparently BS.

Thanks a lot for your replies, surely helps!

Makes me wonder though, does he even need sales sheets from every stock agency or should a simple paypal transaction sheet suffice?

What do you supply to your bookkeepers?

I'm in the UK, and it will presumably depend where you live, but I give my accountant the PayPal transactions, and the bank transactions for Alamy.

I try wherever possible to make a screenshot of the currency transaction for the day the payment comes into PayPal, as the chart my accountant otherwise uses has better rates, so I have to pay more tax.

Should ask what country you are in - but if you are US/Canada, then that is correct. Your bookkeeper only needs the info from the sales agencies you are getting paid from, whether they withhold taxes or you enter tax treaty information, etc. In essence, you are receiving royalties, as opposed to directly licensing the clips yourself (you should read the license agreements for the agencies you sign up with).

If you were selling 'individual' licenses yourself - then yes, your bookkeeper would need that information/country of orgin, i.e., for VAT purposes in the UK, and depending on sales, various tax info from different countries. Agencies however selling that for you almost always collect VAT on your behalf, etc - and basically just send you a royalty check.

Should ask what country you are in - but if you are US/Canada, then that is correct. Your bookkeeper only needs the info from the sales agencies you are getting paid from, whether they withhold taxes or you enter tax treaty information, etc. In essence, you are receiving royalties, as opposed to directly licensing the clips yourself (you should read the license agreements for the agencies you sign up with).

If you were selling 'individual' licenses yourself - then yes, your bookkeeper would need that information/country of orgin, i.e., for VAT purposes in the UK, and depending on sales, various tax info from different countries. Agencies however selling that for you almost always collect VAT on your behalf, etc - and basically just send you a royalty check.

Keep in mind that this isn't classified, for tax purposes, as "royalties" since you are still actively producing, working and collecting income.  If you did not work on your portfolio, having retired or had another full time job, etc., it turns into "royalties".

Thanks a lot for your replies, surely helps!

Makes me wonder though, does he even need sales sheets from every stock agency or should a simple paypal transaction sheet suffice?

What do you supply to your bookkeepers?

I'm from the Netherlands as well, so perhaps I can chime in.
As others have stated, your accountant doesn't need to know every single buyer or their country of origin. That's only relevant when you're selling directly to clients, in which case VAT rules would apply. However, when you're selling through an agency, that's not your responsibility. All that matters if that you keep track of all payouts you have received, and give that total revenue number to your accountant.

I asked my accountant once, and I didn't even need to supply my Paypal transaction sheet, only the total revenue. If you're accountant keeps bugging you about it, you should find another one.

I'm from the Netherlands as well, so perhaps I can chime in.
As others have stated, your accountant doesn't need to know every single buyer or their country of origin. That's only relevant when you're selling directly to clients, in which case VAT rules would apply. However, when you're selling through an agency, that's not your responsibility. All that matters if that you keep track of all payouts you have received, and give that total revenue number to your accountant.

I asked my accountant once, and I didn't even need to supply my Paypal transaction sheet, only the total revenue. If you're accountant keeps bugging you about it, you should find another one.

Thanks Colin! I've worked with this guy for almost 10 years and have been very satisfied with the job he's doing, but yes it's time he let's this go.
Sent him an email explaining it once more (the input from this thread helped me there), let's see...