CGTrader Updates: VAT
Discussion started by eduardas
Hi Everyone
We would like to inform you that the adjustments relating to VAT accounting and payment in the checkout process has been implemented. Starting today the VAT will be added on top of the listing price on CGTrader and will be fully covered by buyers.
What does it mean to you?
- The VAT line in “My sales” page will no longer be shown to you.
- Your end payments are higher
- Individuals in the EU might negotiate prices with you more often :)
Generally, we believe that you might get additional questions from customers, so here are key things to remember:
- There is a notification about VAT next to each product price.
- Customers see the full amount due including VAT in the checkout.
- No VAT tax is applied for individuals and businesses outside the EU.
- To avoid double taxation, businesses in the EU are subject to VAT exemption and 0% VAT rate will be applied
- Lithuanian companies (as based in the same country as CGTrader, UAB) will pay 21% VAT
- All individuals from the EU will be applied VAT rates imposed by tax authorities in the country the buyer is located in (the tax rates applied will be shown in our FAQ shortly)
- You can learn more about VAT by clicking here
Best,
Eddie, CGTrader
Answers
strongly needed imo, nobody wants disappointed customers in the checkout
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I want to apologize bit the information seem not very clear to me,
"To avoid double taxation, businesses in the EU are subject to VAT exemption and 0% VAT rate will be applied"
"All individuals from the EU will be applied VAT rates imposed by tax authorities in the country the buyer is located in (the tax rates applied will be shown in our FAQ shortly)"
These lines are excluding each other as I understand, buyers in EU either pay VAT or not? Answer to this question means that sellers of the models either subjects to VAT for the taxation or not. Please explain.
Thanks!
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@podvoprosov
If you are a normal person from EU and you buy a digital product on the internet the shop has to collect VAT and sends it to your country afterwards.
If you are a business person or a company from EU and you buy something from a different country you pay the price without VAT and afterwards you have to pay VAT to your country by yourself.
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Thanks for the answer.
I would like to understand how it is results in the income of the seller of the model. Does that mean that all the revenue for the seller of the model is being affected by the VAT, therefore seller becomes a subject to VAT and declare income including it? (as there are no direct contract between seller and buyer but the CGtrader market)
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@podvoprosov
You are overthinking this. CGTrader deals with buyers and their VAT. That is unimportant to you as a seller.
CGTrader gives you royalties and that is your income - revenue https://www.cgtrader.com/profile/sales#monthly-summary
If Im a seller in the us and someone from europe buys one of my 3d model does that mean I have to file extra paperwork register for moss and pay vat for someone living in europe or does cgtrader take care of all of this and I don't have have to do anything?
awesome this makes things a lot easier for me one more question I have is if I have to worry about collecting state sales tax or if cg trader also takes care of this
I don't know what you mean by state sales tax (I'm from EU). If you are US person you have (business) income from CGTrader and you naturally have to pay your income taxes.
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sales tax is different from income tax basically when selling something lets say someone from new york sells something the buyer would normally be required to pay a certain amount of sales tax and then the seller would be required to send that tax collected from the buyer to the state Im wondering if cg trader handles this or if 3d models aren't really taxable sales
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@dwweatherhead I didn't know you have something like this in US. It is very similar to our VAT. But..
If someone from US buys your model here he is buying it from CGTrader - EU based company not directly from you.
And once a month you receive payment from CGTrader. CGTrader is your only "customer" in this system.
So only one tax related thing you have to care of is your income from EU based company.
This applies to selling 3D models here. I'm really not sure about "3D Jobs" since they have their own Terms & Conditions I didn't read.
yeah unfortunately we do have sales tax in the us but It's great to hear that cgtrader is the one really selling my 3d models. glad to hear that I don't have to worry about this. by the way how long does it usually take to confirm payment agreement It says pending for review?
Mine took maybe two days. But CGT staff don't "work" on weekends.
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thank you for your time cant wait to get some sales posted
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As a buyer I have to let you all know that it is crazy to surcharge me at the end of a deal. VAT is charged to the seller on selling an item. For a buyer its INCLUDED in the price of the item. When I negotiate a price for an item or pick something up in a store and put it in my basket.. I dont want to receive a 23% surcharge when paying! and for this reason I am out and the designer is missing out on the deal. Unless the seller is willing to lower the price by 23%. Price that is agreed on is price that is agreed on. What happens internally for tax offices is just that.. internally!
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Today they started charging me extra TAX on my purchase. Do you realize that it has become unprofitable for me to buy from your site? I will look for alternatives on other sites. That's how they lose customers because of their greed.
They don't charge you TAX because they want it but because they have to, according to EU laws. The TAX they collect from you is sent back to your country, they don't keep it.
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