What is the situation of LTD company registered in the UK with regard to trading on envato market? Is it true that when a customer from Japan or another country buys from us at envato market, we have to register for VAT in that country?
The situation is clear in the case of customers from Europe because envato is a supplier for eu vat purposes (similarly with customers from Canada and Australia) but how does it look for customers from countries such as Malaysia, Japan, India etc.?
When the buyer is out of EU, there’s no additional tax charged for the purchase so you don’t have to pay anything. The only issue is informing the government about “where to money comes from” when it’s sent to your account but at the end of the year, Envato sends TAX documents as well as you can use it.
For the TAX and other purposes, you should contact a local tax authority for more information or Envato support. I believe most of the authors are selling as individual
Ok but my question is about UK LTD Company (not about selling as individual). If I am selling my works on the market to “other countries” (not EU, USA, Canada, Australia…) my company don’t have any responsibilities with this?
My accountant claims that if the buyer is (for example) from Malaysia or Japan etc. I have to register to vat in this country ->> specially when the buyer is not buying as a company but as normal private person.
So far Envato as an intermediate entity is managing the VAT process for you, no need to register your company in the particular countries. But this could change in the future, like it did on other similary marketplaces.
Are you sure? When I see buyer from (for example) Malaysia there is no any tax added… and on invoice there are only buyer and my details… no any tax - nothing.
If you’re buying an item at 20$ from non-EU country, you pay 20$ but if you’re in EU ( or US or AU ), there’s VAT added to the item price that the buyers pay ( 24$ same item )
I know - but I am not asking you about customer perspective here…
Yes - I know - but I am asking what are the tax responsibilities for seller in this situation → in this case what are the tax responsibilities for UK LTD Company.
I am asking about what is the UK LTD company responsibility. → UK LTD company is selling projects on the envato market → for example the buyer (customer) is from Japan and he’s buying one item for $10 - > an my question is → what this LTD company should do now? is there any tax responsibility for LTD company for digital goods sale in Japan.
Is that so hard to understand my question? come on…
It is best to ask Envato’s tax department support@author.envato.com whether Malaysia, Japan etc. will be implemented. As far as I know they manage at the moment the VAT on e-services for customers from EU, Russia, Singapore and Korea.
Mod edit: updating the email address for Tax questions
I have a question…
come on…