Launching Envato USA Inc

Oh man, you didn’t get the point… But i highly understand your point of view, but if talkin about fair games, you probably want to see on envato side… How if they decide to not pay US taxes and then US not allow Envato to sellin to their citizen and impact the income… How if they takes burden to pay taxes of 100% price (in case they only get 50% of the price) and get bankrupt then author also get the negative impact… Things that i believe, they have smart man on team that already think about plus and negative and decide the best… Run the bussines is not easy, and run the marketplace is not cheap. I dont want to trap in this arguing anymore anyway… So good luck with that! :laughing:

Envato has to pay the tax in mention because they moved to us. Before that we as author did not need to pay the tax.

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You were unable to answer this question. Your answers are focused on Envato’s benefit, and thing is my dear friend: authors doesn’t get any benefit from the move to US, but way worst is the opposite.

Good luck!

Exactly! Why Envato would need to move “virtually” to another country if they sell digital goods, plus they still manage the transactions based on Australia local time?

That’s weird, IMHO.

Because they can …

Who says I am not doing exactly that? But that’s - again - not the point :wink:

Make it iTunes then, rather than Apple as a whole. Is that way too different?

Yup, quite different and deviates from the discussion. As others keep pointing out, before this change there was no tax burden. Now it depends on where you live. I’m not affected but I certainly sympathize with those who do.

It also limits me to sticking to countries that have a tax treaty with the US if i wanted to change my place of business. Not a great move for people who conduct business online.

Apple is a US company. They are based on US!
Envato is an Australian company. They are based still on Australia!

Sorry, you don’t have a valid argument.

By the way, you are right. I still don’t see any documents related to US company. Monthly invoice is issued by Australian company.

So you’re saying that Envato planned and announced the change, are charging and remitting tax, and sending out the end of year tax documents to thousands of authors… when there’s no obligation for them to do any of that? They’re just doing it for fun?

I’m saying this:

Please read, instead of divert the discussion.

Mate we are simply static there was no need for the move at the first place. Since nobody is seeing any results. And even if they are no need to be present as a company there.

I’m not diverting the discussion… you said what you said to get across your point that there’s no need/point/requirement for Envato to pay taxes to the US. My reply was in response to that, so I’m not diverting anything!

Have you considered that you might be earning less if they hadn’t have moved to the US? I’m not saying that’s what’s happening, I have no way of knowing without access to Envato financial reports… but it’s a possibility.

Actually no. Every analsis we made shows contrary. For example one of the main reason that they stated ia to bring more payment options to us buyers. What payment options do they have which they could not if they did not move. Mate you have to see that the move was entirly for the diferent reason.

You have analysis of what the sales figures would have been if they hadn’t have moved to the US? Care to share?

Envato Pty Ltd is the Australian registered company.
Envato USA Inc. is the US registered company.

If this is our Envato USA Inc.
https://www.ca-registry.com/C3916708-envato-usa-inc
Then Envato has a good reason to outsource profits to a company registered in California, California has a corporate tax of 8.840% …Australia, however, 30%

Here’s where a little bit of information can be a dangerous thing! First, they may have been registered in California, but their location and jurisdiction is Utah (if that is ‘our Envato’ on that listing), which has a corporate tax rate of 5%. However, if they based the location purely on taxes, then they would have gone to Wyoming instead, which is 0%.

However, that aside, you’ve then got federal taxes on top of state taxes, which are 35%. So instead of Envato paying 8% compared to 30% in Australia (which could lead people to believe it was some big tax avoidance scheme), they’re actually paying 40% compared to 30%. So if this was purely some cunning ploy to pay less corporation tax, the guy who suggested moving to the USA should be fired!

lol @SpaceStockFootage what if the person who suggested to move is @collis?