Introduction
Envato is now registered for VAT in Türkiye and charges VAT to buyers residing in Türkiye. This will impact all Envato Market authors based in Türkiye, as VAT will be applied to Author Fees. Below, we explain how this change affects you and what to expect.
What is Changing?
As part of our tax compliance obligations, Envato will collect VAT on Author Fees for authors based in Türkiye. This means that a VAT charge will be applied to the Author Fees you pay to Envato unless a VAT number is provided. When VAT is charged, the VAT rate will align with Turkish tax regulations, and you will see VAT charges reflected in your statement and invoices.
Important Note for Business Customers
Non-resident platforms facilitating digital services, like Envato, are not required to charge Turkish VAT to Turkish business customers. Instead, a reverse charge mechanism applies, meaning that businesses in Türkiye are responsible for self-assessing and reporting VAT on their transactions. All businesses in Türkiye are automatically assigned a VAT number in the form of a VKN. If you have a valid VAT number (Vergi Kimlik Numarası – VKN), you must update your VAT number in your Envato account settings to ensure that VAT is not charged on your Author Fees.
What Do You Need to Do?
- Ensure your tax details, including your VAT number, are up to date in your Envato account settings. Log into your Market account and select 'Settings' from the menu under your username. If you choose Türkiye as a country, a new field will appear where you can enter your VAT number in the "Tax ID" field.
- If you provided your VAT number, you may not be required to pay VAT to Envato on Author Fees due to the reverse charge mechanism. Consult with your tax advisor for guidance.
- Review your Envato Market statements to understand how VAT is applied.
FAQ's
Why is Envato collecting VAT on Author Fees?
Envato is required by Turkish tax laws to remit VAT on Author Fees for authors based in Türkiye unless a VAT number is provided.
How much VAT will I have to pay?
The VAT rate will be based on current Turkish tax regulations. You will see the specific percentage applied to your Author Fees in your statements unless you have provided a valid VAT number.
Will this affect my earnings?
Yes, VAT on Author Fees will be an additional charge, which may slightly reduce your overall earnings if you have not provided a valid VKN/VAT number.
Where can I see the VAT charges?
VAT charges will be visible in your Envato Market statement and invoices.
How can I ensure VAT is not charged to me?
If you are a business customer, please update your VKN/VAT number in your Envato account settings to avoid being charged VAT on your Author Fees. You will then be responsible for reporting VAT under the reverse charge mechanism.
What if I have more questions?
For any tax-related concerns, please reach out to your tax advisor. For account-related queries, contact Envato Support.