Author Topic: ENVATO EU VAT is not reported in the author’s name (Read 4625 times)

r2d2 · « **on:** December 18, 2015, 04:06 »

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Envato is responsible for determining, collecting and remitting VAT for all Envato Market purchases from EU buyers.

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Envato will report the VAT collection and remittance to the relevant EU member state authorities using our EU MOSS VAT registration.

sounds good but then:

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For clarity, EU VAT is not reported in the author’s name, and we do not require author VAT registration numbers or details.

From:
https://help.market.envato.com/hc/en-us/articles/204416900?_ga=1.81029911.1024980761.1450428179

I dont know if it is possible/legal and the contributor not having to pay more VAT in his own name.
What do youb think is that legal for european contributors?

MichaelJayFoto · « **Reply #1 on:** December 18, 2015, 04:18 »

Quote from: r2d2 on December 18, 2015, 04:06

Quote
Envato is responsible for determining, collecting and remitting VAT for all Envato Market purchases from EU buyers.

Quote
Envato will report the VAT collection and remittance to the relevant EU member state authorities using our EU MOSS VAT registration.

sounds good but then:

Quote
For clarity, EU VAT is not reported in the author’s name, and we do not require author VAT registration numbers or details.

From:
https://help.market.envato.com/hc/en-us/articles/204416900?_ga=1.81029911.1024980761.1450428179

I dont know if it is possible/legal and the contributor not having to pay more VAT in his own name.
What do youb think is that legal for european contributors?

With all other agencies, this is quite normal: They are selling their product to a EU citizen, then they have to charge the appropriate VAT and send it to the tax offices. That's what already happens for years with Fotolia, iStock, Shutterstock... I am a supplier to a non-EU company. This doesn't fall under VAT requirements. I only have to charge VAT for products/services sold within the EU.

So all of this would affect me only if the contract was a direct contract between me and the end customer. For example, when I sell things on Ebay, they are just offering the platform but the sale is still between me and the customer. So I have to care about VAT requirements.

r2d2 · « **Reply #2 on:** December 18, 2015, 04:42 »

Quote from: MichaelJayFoto on December 18, 2015, 04:18

Quote from: r2d2 on December 18, 2015, 04:06
Quote
Envato is responsible for determining, collecting and remitting VAT for all Envato Market purchases from EU buyers.

Quote
Envato will report the VAT collection and remittance to the relevant EU member state authorities using our EU MOSS VAT registration.

sounds good but then:

Quote
For clarity, EU VAT is not reported in the author’s name, and we do not require author VAT registration numbers or details.

From:
https://help.market.envato.com/hc/en-us/articles/204416900?_ga=1.81029911.1024980761.1450428179

I dont know if it is possible/legal and the contributor not having to pay more VAT in his own name.
What do youb think is that legal for european contributors?

So all of this would affect me only if the contract was a direct contract between me and the end customer. For example, when I sell things on Ebay, they are just offering the platform but the sale is still between me and the customer. So I have to care about VAT requirements.

Please read carefully!
The contract at Envato is direct between buyer and contributor.
Thats the difference to Shutterstock, FT, Istock etc. who act as an agencie. Envato claim to be only a platform/marketplace.

Tror · « **Reply #3 on:** December 18, 2015, 07:51 »

Quote from: MichaelJayFoto on December 18, 2015, 04:18

With all other agencies, this is quite normal:

No. Envato is not an Agency. Envato is a Marketplace which puts all the legal burden of VAT, Tax, invoices on the shoulders of the Contributor.

If you live in Europe you should delete your account. Otherwise in _most_ EU countries you are effectively violating the law by contributing to a Marketplace which issues illegal invoices on your behalf (most likely not in format/numbering/language of you county).

Furthermore, please be aware that Envato declares the SALES price (the price including their cut) as your income. To deal legally with this you would have to declare the full sales prices of files sold on Envato as YOUR income and then claim Envatos "commission" as your expense to the local tax office. Envat _may_ report those numbers to your local tax office and bring you into big trouble. If you contribute photos this means that you might have to write one invoice and deduct one commission expense per photo sold to your tax office.

Don`t do business with shady companies like this guys!

sharpshot · « **Reply #4 on:** December 18, 2015, 09:30 »

I deactivated my portfolio because of this issue, too confusing for me, they act exactly like an agency but if they insist they aren't one, then I can't use them to sell my images.