Around a year back, there was a big hullabaloo about Envato adding a whole layer of taxes and invoice reporting to their account center for authors.
This left a lot of them confused and a very, very long forum chain had formed around the topic. In that I had predicted, correctly it seems, that Envato was probably going to change how they do things…geographically.
One of my predictions, see the full post here, was:
d) Will be setting up a satellite office in the US.
Surely enough, Envato just announced today their future plans of setting up in the good ‘ol USA.
uncle sam and envato authors
With their move comes a whole set of questions and doubts from marketplace users. Most authors are voicing their concerns, in this forum thread, that they’ll have to submit information to the U.S government (read IRS) on what they earn, who they are and where they live. This is concerning because most of us around the world don’t see the need for that country to know anything about us. Never mind for the matter they probably already do (Hi, NSA!).
Even though it only applies to U.S buyers and authors it will likely affect the entire marketplace, as a big percentage of the buyers on that site obviously come from there.
Some categories are exempted, but that’s a moot point.
The real issue here is the one of burdening authors with extra steps in their lives when they decide to sell their products on Envato and an unnecessary disclosure of personal information and earnings to a foreign government entity.
Not too mention when it comes to tax time they have to seek the help of a financial adviser or tax consultant for earnings that maybe just pocket money for them and not necessarily a full time means of living.
Established authors might be OK with this move as some have said it could be beneficial, I just don’t see how.
What about you? What are your thoughts? Let us know in the comments.