Last year as part of our 2014 roadmap, we kicked off an epic project to improve the financial tools and systems on Envato Market. Over the year, we made small changes to the statements and earnings pages, introduced express withdrawals for high-income authors, and started collecting US and EU tax information.
We have our annual roadmap on its way, and as you might guess, financial tools and systems will continue to be a key focus in 2015, starting with two important announcements today:
- We’re looping back to the community about our business model. You can read about this here.
- From February 1st 2015 onwards, we’ll begin issuing complete commercial documentation, including invoices, receipts and credit notes, for all Envato Market transactions. You can read more about this below.
So, what changes are we making to our commercial documentation?
For buyers, from February 1st 2015, when you make a purchase you’ll get:
- An invoice from the author for each item license purchase
- An invoice from Envato for the buyer fee charged on each purchase
- An invoice from Envato for the handling fee (if it applies).
For other types of transactions you’ll receive:
- A receipt from Envato for when you deposit credit on your account
- A credit note for each item purchase refund
- A credit note from Envato for each buyer fee or handling fee refund
We’ll also issue authors with:
- A copy of the invoice for each item license purchase
- A copy of the credit note when a sale is reversed or refunded
- A monthly service fee invoice from Envato that includes all author fees and SWIFT charges for that month.
So these documents are tax-compliant, they’ll include user information on both sides of the transaction to a limited extent. For example, buyers will receive item license purchase invoices showing their own full name and address as well as the author’s username, company name (if provided; full name if not), city, state/province and country. Similarly authors will receive a copy of the invoice with the buyer’s state/province and country shown.
Screenshots of all commercial documents are available in our help center:
Finally, we’ll be updating the Invoices and Statement pages. Here’s how:
- The Invoices tab will disappear
- Invoices issued before February 1 will be linked to from their corresponding deposit transaction line on the Statement page in a new column, Document
- From February 1, each transaction gets its own line on the Statement page, e.g., authors will see a separate line for each sale, author fee and SWIFT fee
- The new commercial documents will be linked to from the corresponding transaction lines, e.g., sale and purchase lines will include links to their item license purchase invoices under the Document column. For our author and SWIFT fees, the corresponding commercial document will be made available at the end of the month as a single consolidated invoice.
EU Value-Added Tax (VAT)
As we’ve previously announced, from January 1st, 2015, we are managing VAT compliance, collection and remittance. We’ve set up an EU MOSS VAT registration and our registration number is EU826409867. When we begin collecting VAT, it will be reflected in the relevant commercial documents outlined above. We’ll announce this here and in the forums and also publish a series of help center articles to support authors and buyers through the change.
To implement these changes, we’ve scheduled a short period of downtime for Envato Market. The downtime will begin at 11:55 PM Australian Eastern Daylight Time on Saturday January 31, 2015 and should last about 5-10 minutes. On the day, we’ll be posting live updates in the forums and on our social media channels (Envato Market Facebook and Twitter and Envato Help Twitter) , so you can follow progress there.
What Do I Need to Do?
- Everyone: Avoid purchasing or uploading new items during the downtime.
- Authors: Update your name, business name and address on your Settings page so it includes the details you want included on your invoices (both the limited version given to the buyer, and your own copy for your records).
- Screenscraper Creators: Update any scripts you created that rely on scraping pages the Statement and/or Invoices page.
As with the business model announcement, we’ve created a forum thread specifically for questions about the new commercial documents and Statement page. Before hopping over there, please carefully read the help center articles linked to above. Please also keep in mind that we’re not able to provide advice specific to your tax situation (instead, we encourage you to speak to a professional accountant / tax advisor) and you can also always email: [email protected].