Summary: This article outlines the responsibilities of managing Australian Goods and Services Tax (AU GST) when selling items on Envato Market, as well as some examples to help you understand.
Whose responsibility is it to manage AU GST?
- Envato is responsible for determining, collecting and remitting GST for all Envato Market purchases from Australian customers.
- The AU GST obligation is borne by Envato, you have no further responsibility to deal with AU GST on sales made through Envato Market.
- Envato will remit AU GST collected to the Australian Tax Office.
- As of July 1st, 2017, the seller’s location does not make a difference, Envato is accounting for GST on all sales into Australian buyers.
Do you have an example of how it works?
- AU GST is added to the list price for purchases by all Australian customers.
- The item price (the amount the Author receives) will remain unchanged. Moreover, the GST won’t appear on your statement as it’s not the Author’s responsibility or liability.
Here are some examples:
|Exclusive, Elite AU Author selling to AU Buyer||Exclusive, Elite AU Author selling to non AU Buyer||Exclusive, Elite non AU Author selling to AU Buyer|
|$10.00||Envato Buyer Fee||$10.00||Envato Buyer Fee||$10.00||Envato Buyer Fee|
|$50.00||Authors Item Price||$50.00||Authors Item Price||$50.00||Authors Item Price|
|$60.00||List Price||$60.00||List Price||$60.00||List Price|
|$6.00||AU GST Added||$0.00||AU GST Added||$6.00||AU GST Added|
|$66.00||Total Buyer Pays||$60.00||Total Buyer pays||$66.00||Total Buyer pays|
|Author pays Author fee @ 12.5% of the $50|
|$50.00||Author Item Price||$50.00||Author Item Price||$50.00||Author Item Price|
|$6.25||Envato Author Fee @ 12.5%||$6.25||Envato Author Fee @ 12.5%||$6.25||Envato Author Fee @ 12.5%|
|$0.63||AU GST Added||$0.63||AU GST Added||$0.00||AU GST Added|
|$43.12||Net Change to Author earnings balance||$43.12||Net Change to Author earnings balance||$43.75||Net Change to Author earnings balance|
For AU GST purposes only, Envato is shown as the supplier of record and our ABN is listed on the invoice. Below is an example of an author view of the AU GST item purchase invoice:
GST collected on Author fees
- From July 1st 2017, Envato started collecting and remitting GST for service fees charged by Envato (Australian Entity).
- For business sellers, to ensure that your Australian Business Number (ABN) is added to your service fee invoice, add the ABN for your business using the billing information form on your profile. Note that after a tax form has been submitted, that all billing information, except ABN cannot be modified. Use this form to update your ABN.
- The tax invoices provided may be used for the purpose of claiming input tax credits that an Australian Author may be entitled to.
Author Services Fee Invoice Example
Converting GST paid in USD to AUD
Note that the amounts shown on all invoices and adjustment notes are in US dollars. To calculate the GST paid on an invoice in Australian Dollars, use the average monthly exchange rate for the month that the invoice or adjustment note was issued.
The Reserve Bank of Australia provides only daily figures which can be used as the basis for these calculations, however, the published monthly exchange rate for a financial institution may also be used.