Authors from Serbia, Croatia, Bosnia and Herzegovina... (Tax Discussion)


#1

Hey,

So, from January we have 30% less earnings from US customers, and that’s it? I try to look at the bright side, as Envato team says there will be more sales, but somehow I do not have confidence in it. If they are so sure, why they do not take risks with tax, or at least why they don’t increase prices by 15%…


#2

My opinion is they should charge tax to the buyer and we will be all happy!


#3

I would be happy and to share tax, 15% buyers 15% authors! Anything is better than the current situation…


#4

It is a highly competitive market. All items have pretty much the same price across many categories.

For example, take a WordPress theme or html template. If you increase the price by 30% for each item owned by someone in a no-treaty zone due to taxation, it will stand out and make the customer wonder why is it they are paying an extra 30%, 10%, 5% etc when every other item costs less.

It will simply penalize you further and not incentivise imho.


#5

They doesn’t need to increase the price, they can use the same system as for The European Union value added tax (VAT).


#6

I’m not an accountant as most people here but with my limited knowledge I can say that sales tax and VAT are generally not the same thing. Yes, you can increase your price with the hope of covering the tax however, you end up with an item that costs more than the competition and you cannot state that they are paying an extra 30% as tax.

Most of our customers are businesses and as such the VAT they pay is often recoverable by their business and can be claimed back. The sales tax on the other hand is something you the seller pay and can be claimed back in some form by you and not the customer. So adding the extra burden on the customer is not a great solution.