Hey Guy’s,
Sorry if I’m being completely stupid here but the introduction of EU VAT has really confused me.
I’m currently self employed and earning under the VAT threshold, my company is not VAT registered so does the EU VAT still apply to me?
Sorry if I’m being naïve here but the whole VAT situation confuses the daylights out of me haha
Regards
Tom
My bank is already charging me everytime I purchase credit, because of currency exchange. Now, pretty heavy price to pay %20 VAT on top of it. Damn!!!
tomupton said .I’m currently self employed and earning under the VAT threshold, my company is not VAT registered so does the EU VAT still apply to me?
If you sell directly to any EU customer outside the UK, yes. If you only sell through marketplaces, however, they will take care of the whole VAT aspect themselves.
aelia_co saidtomupton said .I’m currently self employed and earning under the VAT threshold, my company is not VAT registered so does the EU VAT still apply to me?
If you sell directly to any EU customer outside the UK, yes. If you only sell through marketplaces, however, they will take care of the whole VAT aspect themselves.
This is what’s confusing me, all of my customers are UK based :-/
tomupton saidaelia_co saidtomupton said .I’m currently self employed and earning under the VAT threshold, my company is not VAT registered so does the EU VAT still apply to me?
If you sell directly to any EU customer outside the UK, yes. If you only sell through marketplaces, however, they will take care of the whole VAT aspect themselves.
This is what’s confusing me, all of my customers are UK based :-/
The basics are:
If you’re a uk business, you charge VAT on any products / services you sell in the EU, if you’re vat registered which is set from £79k, but the EU wanted more money from taxes so introduced a “digital tax” which basically means the buyer pays vat no matter the amount, the vat is dependant on the buyers country e.g. uk is different to Germany.
If you sell on a marketplace like Envato then the likelyhood is you won’t need to charge VAT (they do it for you) but if you do sell on your own platform then you will likely need to register for Moss
tomupton saidaelia_co saidtomupton said .I’m currently self employed and earning under the VAT threshold, my company is not VAT registered so does the EU VAT still apply to me?
If you sell directly to any EU customer outside the UK, yes. If you only sell through marketplaces, however, they will take care of the whole VAT aspect themselves.
This is what’s confusing me, all of my customers are UK based :-/
Most important question is whether they are business customers or not.
For business customers there is no difference.
This is what's confusing me, all of my customers are UK based :-/ - tomupton
I understood that if you are UK based and all your clients are UK based, then you do NOT have to pay MOSS VAT. It only applies when selling to another EU country. If this is correct Evanto needs to comply with this.
I also found an article pointing out a loophole. You can create a product that falls outside of their definition of digital service. Apparently, if you email the download personally rather than have it as a download from the website or sent as an automatic pdf, then you don’t have to pay VAT (I know, ridiculous, right?!) Or if there is a ‘live’ element to what you are doing, then it also doesn’t require that you pay the EU VAT.
As a casual buyer, it appears that Envato has just increased its prices by 20%.
Sadly yes there is no way around this, except for somebody to drop there earnings by 20%
Has Envato seen a drop in sales to the EU already since the implementation of these VAT changes?
I know I have been put off buying one of the more expensive themes due to this so I wondered if you have already seen any impact.
Sunday2014 saidAs a casual buyer, it appears that Envato has just increased its prices by 20%.
That’s what it is.
Because, let’s be honest, this extra money will go who knows where and we won’t see what EU will do with it.
Anps saidSadly yes there is no way around this, except for somebody to drop there earnings by 20%
I’d rather say there is no easy way around this.
As usual, it’s the customers at the end of the chain who is punished, and only them.
The punishment could be split 
studio5000 saidI know I have been put off buying one of the more expensive themes due to this so I wondered if you have already seen any impact.
As a customer, I’ll certainly think twice and be even more careful before buying something expensive that’s for sure.
Also, there’s a bug with VAT calculation: correct VAT is applied when I choose to pay with “Envato Credit”, but if I select Paypal or VISA, a small fee is then added (between 0.20$ and 0.40$).
I’d rather edit my previous post but it seems I cannot.
In the end, it seems like we’ve just been granted the privilege of paying the VAT tax on the “handling fee” tax.
marmot saidI’d rather edit my previous post but it seems I cannot.
In the end, it seems like we’ve just been granted the privilege of paying the VAT tax on the “handling fee” tax.
Unfortunately, VAT applies to everything, including fees. If you want to get an example of absurdity, when customs stop a package at the border and ask you to pay custom fees (i.e. import taxes), they apply VAT on them too. So you effectively pay a tax on a tax.
In the near future it is probably not only in the EU!
Turkey reviews VAT on digital services by foreign providers and likely implement it before the end of 2015.
Japan will levy consumption tax on foreign electronic services from 1 October 2015
South Korea will charge VAT from July 2015.
Australia reviews GST on B2C digital goods & services to close the tax loophole for foreign providers of digitals goods & services to australian consumers.
Hi guys,
I pose the question also to you, hoping someone knows a possible answer. (and I’m sorry if it has been already discussed before)
So: now Envato collects VAT on its behalf and from what I understood from THIS FAQ, authors don’t have to pay it again.
But how to demonstrate it has been already paid? And how to know how much has been paid?
I already asked to my accountant, but doesn’t have an answer for now…
Out of curiosity, what happened to my reply?
expressodesign saidLCweb saidBut how to demonstrate it has been already paid? And how to know how much has been paid?
I already asked to my accountant, but doesn’t have an answer for now…
+1
how we can demonstrate that VAT has been already paid?
As I already replied a month ago, you don’t have to. You provide your products and services to Envato, and they resell them to the final customer. Since Envato is outside of the EU, you don’t have to apply VAT in the transaction with them. It’s up to them to apply and track VAT on the transactions with the final customers.
In summary
I think expressodesign is talking about proving to the taxman that VAT has been paid.
UKFilmFestivals saidI think expressodesign is talking about proving to the taxman that VAT has been paid.
And that’s what I was referring to. Authors are selling to Envato, and that’s where their VAT obligations end. It’s precisely like selling goods to retailer: you sell the goods to the retailer, applying the VAT that concerns that transaction (with Envato, it means no VAT). The retailer (Envato) sells to the final clients, and it’s Envato’s concern to make sure that the VAT is charged, collected and paid.
The taxman cannot come to you and ask if the retailer (again, Envato) to whom you sold your goods is charging his customers the correct VAT. It’s not up to you to guarantee it, nor to prove it. If they want proof, they have to deal with Envato directly.