Tax declaration for Sales & Author Fees for EU-based Author (Germany)

Hi all,
I’m trying to figure out the correct way to handle taxes for my Envato (CodeCanyon) sales and author fees. I studied help pages and forums posts for hours but I’m still not sure 100% if I understood everything correctly. Of course I will discuss that with my tax accountant but before doing that I have to make sure that my assumptions are correct.

Could anybody please help here and give feedback?

My situation:

  • EU-citizen (Germany)
  • Paying sales tax (“Umsatzsteuer”)
  • monthly doing a turnover tax advance return (“Umsatzsteuervoranmeldung”) including a cash-basis accounting (“Einnahmen-Überschuss-Rechnung”)
  • Submitted Form W-8 with my foreign tax ID number (“Steueridentifikationsnummer”)

My assumption for handling taxes in my situation:

  • All earnings from Envato are net and VAT-exempt (“umsatzsteuerfreie Betriebseinnahmen”)
  • All fees from Envato are net and VAT-exempt (“umsatzsteuerfreie Betriebsausgaben”)
  • Since earnings and fees are non-VAT, I don’t have to include them in my turnover tax advance return, but simply include them as net amounts in my cash-basis accounting (“EÜR”)
  • For documentation reasons I simply download the invoices from my sales and the invoices for my fees
  • For EU-customers, Envato acts as the supplier and adds VAT to customer invoices. Although this VAT does not effect me but only Envato and the customer. Therefore I don’t see my VAT-ID on customer invoices or author fee invoices.
  • For US-customers, Envato lists withholding taxes (“Ausländische Quellsteuer”) which I include in my income tax return (“Einkommensteuererklärung”) and deduct it from my paid taxes.


Is that correct so far?
Thank you so much in advance!

Not 100% sure but this may be helpful:

Envato , and not the Author of the item, is responsible for determining, collecting and remitting VAT for all Envato Market purchases for EU customers (regardless of where the seller is located). Your invoice will show Envato as the supplier on record for VAT purposes.

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Some more details from the forum:

That’s correct, I’ve been doing this with my income/expenses through this platform since 11 years and the tax office has accepted everything so far. However, you must convert all income/expenses into Euro based on the official conversion rate of the respective month. The conversion table can be download here: Bundesfinanzministerium amtliche Umrechnungskurse

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