As of 1st October 2019, Envato’s VAT number has changed. Our new VAT number is EU372009975. Prior to 1st October 2019, Envato’s VAT number was EU826409867.
EU tax regulations have Envato act as a supplier for EU VAT purposes only and collect this tax on purchases made by non-registered European Union buyers. If you are a buyer and do not reside in the EU, these changes do not apply to you.
You can read more about the changes at the EU Commission website and in the explanatory notes to Article 9A.
Although the EU implemented new Value Added Tax (VAT) rules on January 1, 2015 - Envato has commenced collecting Value Added Tax (VAT) from buyers only as of March 16, 2015. Envato has absorbed any Value Added Tax (VAT) related costs during this transitional period.
Where does EU VAT apply?
EU VAT is collected from buyers in the EU who do not have a valid VAT registration number, on the following transaction types:
If you are an EU buyer with a valid VAT registration number, you must use the Reverse Charge Mechanism to account for the EU VAT on those transactions.
The Reverse Charge Mechanism procedure is administered by your local tax authorities and further information should be obtained from them or your accountant on how you must account for VAT in your country. For example, this procedure is for buyers located in Ireland.
If you provide a valid EU VAT number or confirm that your country of residence is not located in the EU, you will not be charged VAT on Envato Market purchases.
How does it work?
When a buyer is from an EU country and has not provided a valid, EU VAT Number:
- The amount of EU VAT is calculated as a percentage of the purchase price and/or fee it applies to.
- The percentage is based on the EU VAT rate in your country (Refer to page 3 of the .pdf file)
- EU VAT is paid by you ‘the buyer’. All prices and fees for transactions made through Envato Market shown on the site are EU VAT exclusive.
- EU VAT will be charged in addition to the item price or fee amount and presented to you as ‘the buyer’ at the time of checkout.
- 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.
- Value Added Tax (VAT) charged to buyers will be remitted by Envato to the EU via our VAT MOSS in Ireland.
How to add your EU VAT number to your account?
- Instructions can be found in the VAT FAQ
How do you account for EU VAT if you have a valid VAT number?
If you have a valid VAT number, no EU VAT will be added to your purchase price. It is your responsibility to account for that VAT using the Reverse Charge Mechanism.
Your invoice will not show any VAT but instead will note that Reverse Charge applies.
What happens if your EU VAT number comes up as invalid?
- EU VAT numbers are verified using a 3rd party service provided by the European Commission called VIES.
- If you enter a legitimate EU VAT number and receive a verification error message ‘Number appears to be invalid’ please contact our Team
What if you don't have an EU VAT number but are a business (valid in some countries)?
In some EU Member states, you do not require an EU VAT Number to use the Reverse Charge Mechanism to account for EU VAT on transactions. Envato Market currently only operates on the basis of required valid VAT registration numbers.
What to do if you were incorrectly charged EU VAT?
If you believe you have been incorrectly charged VAT on a purchase from Envato Market, please contact our Team and provide the following information:
- Country of residence
- VAT number
What about EU VAT Exempt areas?
- The Channel Islands
- Mount Athos
- San Marino
- Vatican City
Where is the VAT shown?
Buyer view of the EU VAT item purchase invoice
Where to find invoices?
All additional information regarding invoices can be found in the Buyer's Guide to Your Statement & Documents.
Who is the supplier for VAT purposes?
- For EU VAT purposes, Envato is the supplier of record and will report the VAT collection and remittance to the relevant EU member state authorities using our EU MOSS VAT registration. Please note as of 1st October 2019 Ireland is our Member State of Identification, it was previously the UK.