Summary: This article outlines your responsibilities as an author in managing any local sales taxes that may apply to your sales.
As an author selling on Envato Market, it’s your responsibility to manage any local sales taxes that may apply to your sales, except where explicitly managed by Envato (i.e. EU VAT).
For example, for Canadian authors, sales taxes such as Harmonized Sales Tax (HST) may apply on sales to Canadian customers. For US authors, US Sales Taxes may apply to some US customers.
Please note: European Union VAT (EU VAT) is collected, managed and remitted by Envato.
Find out if you have a sales tax responsibility in your area
Talk to a tax advisor or accountant about what taxes could apply.
Factors to look for:
- Is there a threshold before you need to account for taxes? In some countries, unless your business’ sales reach a certain level, you don’t need to collect sales taxes.
- Do sales taxes apply to digital goods? In many states in the US, products such as software, music, and digital goods are not taxed. You should speak to your tax advisor, but you can start learning about this on sites like Avalara’s Sell Digital Goods? whitepaper (please note you should actually speak to a practising tax advisor to ensure you get up to date and accurate information).
- What locations do you need to account for sales taxes? Different countries approach customer location differently. In the US, for example, you need to determine what states you have nexus in, and those states you should account for sales tax in (if sales tax applies to the products you sell in that location). Make sure to check the relevant rates to charge.
Make sure you are registered and know when and how to account for sales taxes
- Most countries require some form of registration in order to send your sales taxes in. Talk to your tax advisor to ensure you are taking appropriate steps.
Add Information for Sales Taxes on Your Invoices
- The amount shown on your invoices will be inclusive of any applicable sales taxes to customers.
- This article will guide you on how to Add a Company Number or Custom Invoice Footer.
Calculate Your Sales Tax Obligation From Your Statement
From your statement page, you can download a CSV that shows each sale and location information for those customers; including City, State/Province, Zip and Country of the customer. This article will guide you on how to Download Statement Data as CSV.