Everything You Need to Know About the New CGTrader's Centralized Payment System

Remember all that fuss about the changes to the EU VAT legislation? Although a little less in-your-face, it's still a problem for all the online sellers who have to track their customers' location and pay the VAT accordingly.

The new EU legislation that came into force on 1 January 2015, affects all businesses that sell digital services such as downloads, games, apps, e-books and similar digital products, to other European countries. From now on, VAT on digital services will be paid in the consumer’s country, not the supplier’s country, and will be charged at the rate that applies in the consumer’s country. [Read more here]

Why we think centralized payment system is the right solution

The main issue with the new EU VAT legislation is that it makes everything so complicated. If you sell models on our marketplace, your customers may be based in any one of the 28 EU member states, which means you're faced with the dizzying obligation of accounting for all the different VAT rates in these countries. By introducing the centralized payment system we're making this pain go away. CGTrader becomes your sole customer, removing the VAT issue from the top of your list. Simples.

Now, let's see what changes you need to be aware of to enjoy a smooth transition.

If you're a designer...

• We're getting rid of CGTrader credits. You will no longer be required to buy credits to re-activate your models on the site. If you have any credits left, you will receive 100% royalties until all your credits expire. We're also updating your dashboard to reflect the amount of credits in real time, so you can stay on top of the numbers.
• No hassle with the VAT payments. We will take care of the VAT issues by detecting your customers' location and charging the appropriate VAT rate, so you don't need to worry about a thing.
• Payments once a month. You will now be receiving your sales money once a month directly from CGTrader instead of different PayPal accounts. The payments will be completed around the 20th day of every month. We're dropping the Skrill digital payment system, but the PayPal and wire transfer payment options will remain open.

If you're a customer...

• You can request an invoice. Since all buying customers will be CGTrader's customers from now on, business buyers will be able to request an invoice.

Noticeable changes on site

Switching to centralized payment system is going to solve a lot of problems for everyone, and to make the experience as little complicated as possible, we're making a few minor changes to your sales dashboard.

• Credit expiration. As mentioned above, you will be able to see the decreasing number of credits after every sale in real time. The credits you currently own will be reimbursed through royalties - you will receive 100% royalties until all of your credits are used.
• Free sale. It's a new add-on to your dashboard that allows selling 100% royalty-free. Free sales can be obtained through participating in challenges and other CGTrader initiatives. The number of free sales you are granted will be displayed on your dashboard.
• Country detection. In order to charge the correct VAT, we're adding a country detection feature to our checkout process.
• More details. You will be able to find more details, including buyer country code, VAT charged and final royalties in the updated My Sales area.

Centralized payment system will save you a lot of time and nerve with the whole VAT issue and it will also help you increase your sales by attracting more business buyers.

Shoot your questions, concerns or ideas in the comments section!