We desperately need a tool like this, otherwise authors operating in a partnership will leave the market sooner or later. This includes us, we’re currently exploring our options if this won’t be resolved. We’re sure there are much more authors having concerns than Envato might assume. They might just don’t want to speak out or wait for developments on this situation. Creating an Ltd is not always a possibility if members are from different parts of the world and it’s not always an ideal solution even if it’s possible. We have the feeling that on the long term this will hurt not just authors but Envato as well.
The idea proposed by @Odin_Design is very much the way to do it. Other stores (e.g. Steam) and payment processors (e.g. FastSpring) all have similar solutions.
In our opinion where you get it wrong is the “after taxes” part. It should be before taxes, so each of the individual accounts in the split system can be treated separately with their own tax treaties and rates applied. Why would you want to account for the full income when it’s split among parties and you will never posses the full amount? There is no need for a primary “sale” account.
It wouldn’t interfere with Envato’s requirements. Each party in a partnership should have their own individual account. Each of them would be required to submit tax forms and identify themselves. There would be no open room to transfer funds to strange places that Envato or the government cannot track/validate. There would be no option to transfer funds between Envato accounts, the system would split the sale amount dynamically.
Envato already applies different tax rates and others to accounts from different parts of the world. This would not complicate the process. A system like this would just make the same checks in multiple times. The exact same happens when 2 customer purchases 2 separate items. They would just need to split the purchase itself and perform the same checks.
PS: We’re obviously not an expert in the area. But since other high profile stores and payment processors could solve this problem, the question is not about how can it be done but rather if Envato is willing to do it or not.
Kreatura Team