VAT on Author Fees for Authors Based in South Africa
Envato is now registered for VAT in South Africa and will begin collecting VAT from buyers residing in South Africa from July 2025. This change affects all Envato Market authors based in South Africa, as VAT will be applied to Author Fees. Below, we explain how this change will affect you and what to expect.
What is Changing?
As part of our tax compliance obligations, Envato will begin collecting VAT on Author Fees for authors based in South Africa. This means that a VAT charge will be applied to the Author Fees you pay to Envato. When VAT is charged, the VAT rate will align with South African tax regulations, and you will see VAT charges reflected in your statement and invoices.
If you're an Author Operating as a Business
Envato is required to collect South African VAT on Author Fees for all authors based in South Africa, this includes both individuals and authors who operate as a business.
Providing a valid VAT number will not exempt you from VAT charges.
If you are a business author with a valid VAT number, you may be able to recover the VAT paid to Envato by claiming it as input tax on your South African VAT return. Please consult your tax advisor for specific guidance.Make sure your VAT number is updated in your Envato account settings to ensure that your invoices correctly reflect your business details.
What Do You Need to Do?
- Update your tax details. Log into your Market account and select 'Settings' from the menu under your username. If you choose South Africa as a country, a field will appear where you can enter your VAT number in the ‘VAT Registration Number’ field.
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Review your statements. Check your Envato Market statements and invoices to see how VAT is applied.
FAQ's
Why is Envato collecting VAT on Author Fees?
Envato is required by South African tax laws to collect and remit VAT on Author Fees for authors based in South Africa.
How much VAT will I have to pay?
The VAT rate will be based on current South African tax regulations. You will see the applicable percentage applied to your Author Fees in your Envato Market statements.
Will this affect my earnings?
Yes, VAT on Author Fees will be an additional charge, which may slightly reduce your overall earnings.
Where can I see the VAT charges?
VAT charges will be visible in your Envato Market statement and invoices.
If I add my VAT number, will VAT still be charged?
Yes, VAT will still be charged. Providing your VAT number ensures your invoices are correctly issued. If you are eligible, you may be able to recover the VAT through your South African VAT return. Please consult your tax advisor.
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.