VAT in our recent invoices


#1

As shown above, I notice that I was charged 20% for VAT. Does this VAT apply in EU or what?

Same -20% for sales from UK, France… But there is no VAT charge for sales from US, Italy & Turkey. Wondering why? How could this make sense?

Is there any tax policy that I missed? Please advise if you also experienced this.

Many thanks.


#2

VAT is only paid in Europe and the rate depends on the country of residence e.g. I pay 20% as I am in the UK, it’s a part of a policy brought in a couple of years ago by the EU to try and make big businesses pay more tax but it only hits the buyers, the tax you pay is only on digital products. It has been policy for a couple of years now.


#3

You were not charged VAT, as VAT is tax paid by the end buyer, never the seller. As you can see from your statement, the VAT is not deducted from your earnings, but is added on top of list price.

EU laws requires Envato to collect VAT. The amount varies depending on the country. Buyers who are companies with VAT registration are exempted from paying VAT which is probably what you’ve seen for your buyer from Italy. Turkey is not part of EU so it doesn’t apply.


#4

It’s the hidden tax for buyers in EU countries, if you’re author, you will get the same amount of the money but the buyers will pay more


#5

Thanks guys.
I appreciate your answers.