Who is the actual b2c seller (EU VAT issue)?

erf
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Wed Jan 02, 2019 4:25 pm

You may or may not be aware of this, but collecting EU VAT on digital goods became somewhat complicated a few years ago. (See this thread on KVR) Consequently, the most practical solution for small devs has since been selling only through resellers who take care of the VAT collection on behalf of you.

The distribution agreement is a bit vague on whether CA collects VAT and which one is the actual seller of a third-party module.

It's stated that:
You agree that you are solely responsible for the payment of all taxes and fees that result of the sale of your Product licenses, including sales and use taxes, and all compliance requirements thereto.
But for example it's also said that
You represent and warrant that you are the sole author and owner of all intellectual property rights in your Product and/or that you have obtained all intellectual property rights necessary for Cherry Audio to market and sell your Product licenses on our Stores
If CA acts as a seller, then to my understanding collecting EU VAT or any other sales tax is CA's responsibility, and the module developer can't collect these taxes even if he intends to. If the sale is technically between the customer and the module developer, this just makes it unnecessarily complicated for a small module developer, and realistically the options are either to ignore the whole thing and hope you get away with it or refrain from selling modules. :(
Benard
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Thu Jan 17, 2019 1:48 pm

I've also been wondering about these issues. Any comments from Cherry Audio?

I asked my accountant in the Netherlands about this and his response was that VAT laws for software in the EU are way too complicated, and that he wouldn't even be able to advice me on it. He suggested that I make an appointment with one of the big tax firms in NL, but that's definitely not something I would like to have to do at this point, just to be able to sell a few modules on the Cherry Audio store as an independent developer, and before I even know if I can actually make enough money from selling my modules to make it worth the trouble of paying a fancy VAT consultant. :?

I think both PSP and Vult are EU-based. Perhaps they wouldn't mind sharing some advice about how they've handled those issues themselves? I'm sure all the EU independent developers considering offering modules in the store would appreciate any informations we can get about this.
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AndyMac
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Mon Jan 21, 2019 5:05 pm

I'd also need to understand this fully. I have a few (utility) modules that I think others might be interested in, but need to justify the price of the Module Designer to be able to publish to everyone.
Andrew Macaulay
Cherry Garcia
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Mon Jan 21, 2019 10:38 pm

We are working on moving over to a new payment processing system. Cherry Audio is responsible for collecting the VAT taxes and sales taxes. Currently, our system allows each developer to have their own Stripe account but there have been too many issues with people buying modules successfully from developer A and failing on developer B. Therefore, we are moving to a new system, where Cherry Audio collects all payments and then pays the developers their cut, which is 70% of the net cost after payment processing fees. We hope to have this and the shopping cart done in the next week or two.
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AndyMac
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Tue Jan 22, 2019 7:20 am

Cherry Garcia wrote:
Mon Jan 21, 2019 10:38 pm
We are working on moving over to a new payment processing system. Cherry Audio is responsible for collecting the VAT taxes and sales taxes. Currently, our system allows each developer to have their own Stripe account but there have been too many issues with people buying modules successfully from developer A and failing on developer B. Therefore, we are moving to a new system, where Cherry Audio collects all payments and then pays the developers their cut, which is 70% of the net cost after payment processing fees. We hope to have this and the shopping cart done in the next week or two.
Excellent. Thanks for the clarity.
Andrew Macaulay
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AndyMac
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Tue Feb 05, 2019 9:53 am

We are working on moving over to a new payment processing system. Cherry Audio is responsible for collecting the VAT taxes and sales taxes. Currently, our system allows each developer to have their own Stripe account but there have been too many issues with people buying modules successfully from developer A and failing on developer B. Therefore, we are moving to a new system, where Cherry Audio collects all payments and then pays the developers their cut, which is 70% of the net cost after payment processing fees. We hope to have this and the shopping cart done in the next week or two.
Any update on the move to the new shopping cart yet?
Andrew Macaulay
Cherry Garcia
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Tue Feb 05, 2019 6:22 pm

AndyMac,

I wish it was done...but its not quite done. (= We are also moving over to a new eCommerce provider so that we can accept Paypal, as well...so its quite a big change. Maybe next week... Fingers crossed. (=
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AndyMac
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Mon Mar 04, 2019 11:49 am

So now that the new payment processing is in place, what is the normal timing for payments to developers - and what sort of information and stats will we be getting about sales?
Andrew Macaulay
Cherry Garcia
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Mon Mar 04, 2019 3:55 pm

AndyMac,

This is our highest priority right now and all I can say is that sales are doing great for our partners right now. I think you will be very pleased. There will be graphs and preferred payment methods and sales reports. Stay tuned!
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AndyMac
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Mon Mar 04, 2019 4:11 pm

Thanks - looking forward to seeing that.
Andrew Macaulay
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