How do you pay your tax in your country? How do you inform what you earn?

I think there’s a confusion for the relation between Envato and authors. Who are we and what’s our relation with Envato?

How do you inform what you earn to your local authorities?

  • Do you inform yourself as the “seller”? - Because most countries would ask for invoices if you are the direct seller.

  • Or do you inform your earnings as “percentage earned from an agreement” - than Envato is the seller, right?
    If so, how can Envato cut tax directly from the price of the product?

What is Envato, and who are we?