Whose responsibility is it to manage EU VAT?
- Envato is responsible for determining, collecting and remitting VAT for all Envato Market purchases from EU buyers.
- The EU VAT obligation is carried by Envato, you have no further responsibility to deal with EU VAT on sales made through Envato Market.
- Envato will report the VAT collection and remittance to the relevant EU member state authorities using our EU MOSS VAT registration.
- As of January 1st, 2015, the seller’s location does not make a difference, Envato is accounting for VAT on all sales into the EU based on the buyers location.
Whose name is EU VAT collected and remitted under?
EU VAT collected from buyers will be remitted by Envato to the EU via our VAT MOSS in the UK in our name.
For clarity, EU VAT is not reported in the author’s name, and we do not require author VAT registration numbers or details.
Do you have an example of how it works?
- EU VAT is added to the list price for purchases by EU buyers who don’t provide a VAT number. (Buyers who have a VAT number will not be charged VAT, and should instead use the Reverse Charge Mechanism to account for the VAT).
- The item price (the amount the author receives) will remain unchanged. Moreover the VAT won’t appear in your statement as it’s not the author’s responsibility or liability.
Here are some examples: 
For EU VAT purposes only, Envato is shown as the supplier of record and our EU VAT registration number is listed on the invoice. EU Buyers will use Envato’s details when accounting for their EU VAT.
For non-EU Buyers, the author is shown as the supplier.
Author view of the EU VAT item purchase invoice
Buyer view of the EU VAT item purchase invoice
Why do Envato’s Service Fee invoices not show EU VAT?
- For EU VAT purposes only, Envato steps into the supply chain as the supplier on record.
- This means that for VAT purposes, an EU buyer buys from Envato and EU VAT is accounted for on this transaction.
- As a result for EU VAT purposes only the author is deemed to have sold the item to Envato. Since Envato is not an EU entity, there is no further EU VAT applicable.
- For all other purposes, including selling to non-EU buyers, and including income tax purposes, the author is selling directly to the buyer and receiving a sale income.
- Subsequently the author pays an author fee to Envato. You will receive a non-VAT service fee invoice for all author fees and you can use this for accounting for income tax.
What about Non-EU VAT and other sales taxes?
For Non-EU VAT and taxes outside of the EU please go here.