As the world goes more digital, many tax jurisdictions are updating their collection and reporting requirements for those who operate in the digital economy.
Sales taxes are imposed on the recipient of goods and services, but are usually required to be collected by the seller. More recently, tax regulators are shifting the responsibility to collect the sales tax to marketplaces like Envato Market.
What does this mean for authors?
As mentioned above, some jurisdictions require that Envato collect sales tax on behalf of authors from customers. We are currently collecting and reporting for Australian Goods and Services Tax, EU Value Added Tax, and more recently, have been rolling out the collection and reporting of US Sales Tax. As other jurisdictions pass similar laws, we’ll progressively implement them.
We’ll be updating our Author Help Center articles to let you know of these changes as they occur. However, it remains your responsibility to find out about your sales tax requirements, and we recommend that you continue to seek your own tax advice in respect of your obligations.
Each jurisdiction has its own unique requirements for collecting, reporting and remitting. Please refer to our Author Help Center for links to the specific tax authority website for more information.
What does this mean for customers?
Customers in relevant jurisdictions will be required to pay sales tax on applicable purchases. The sales tax amount will be calculated and itemised in the cart at checkout.
There’s no action required by authors at this time, Envato will automatically integrate any newly added sales taxes to the existing reports available in your author dashboard. We’ll be around for the next seven days responding to your questions. Please remember our Community Guidelines as you post.