As of 2015, there are new EU tax regulations that have Envato act as 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.
- If you are a buyer within the EU, please read the EU VAT for buyers article.
- If you are an author please read the EU VAT for authors article.
You can read more about the changes at the EU Commission website, and in the explanatory notes to Article 9A.
Please Note: 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, and will be applied on:
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 the UK.
EU VAT does not apply to Author Fees and SWIFT Fees. For more information on this, please read the EU VAT for authors article.
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 ‘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 the UK. Envato’s VAT number is EU826409867.
When a buyer is from an EU country, and has provided a valid EU VAT Number, no additional tax will be collected. You will receive an invoice that shows that the Reverse Charge Mechanism must be used to account for the EU VAT on that transaction.