New rating system, VAT, royalty fees

Yep, no distinction. And it's really good that CGTrader takes care of this for us, because at the beginning, we were supposed to pay back the VAT to each EU client country ourselves. Certainly the kind of european decision that is purely anti-economic : let's get more taxes, the more complicated, the better, and let's prevent any freelancer from having his own selling website unless he decides not to care about this per-country differenciated VAT and to go for fiscal fraud, not because he doesn't want to pay, but because it's too complicated... Talk about technostructure...

You may be right, but most sales comes from United States, Russia, Brazil, Japan, China, Australia, etc. (0% Vat).

For me it is around 20% of total sales that comes from EU countries, so on only 20% of total sales, taxes of mostly 21% are played (I assume this is the case for most sellers here).

Also noteworthy to mention is the 30%Vat you need to pay on other established sales platforms (on top of the small 40% you get, and this for 55% of the total sales).

Well there is difference if the client is registered as a company or not and unfortunately is different for some countries.That's why I'm asking.For example in the Netherlands the so called VAT exchange between two companies is : the client(buyer) pays the the price of the good or service and the VAT to the contractor (seller),after that the contractor pays the VAT to the Tax office on quarterly bases, the tax office on the other hand returns the VAT to the client by deducting it from his taxes. Lets say that you have a private client from the same country but he isn't registered with KVK( the Dutch Camber of Commerce)(because lets say the guy has full time job and he buys the model for personal project) and the seller has been charged VAT to whom will the Dutch tax office return the VAT?

The EU country of which the operation (CGtrader) is conducting its business under just keeps it to add it to the national income lol ;-)

You are basically trading via that EU country and its VAT regulation agreements with the rest of EU countries.

I don't know how it all exactly works neither, but I can imagine if customers needed to pay the VAT it would be almost impossible to regulate because of all these different countries and regulations they have. As you already point out, ho would have to pay the VAT back to business buyers?

You have private sellers from different countries and business sellers from different countries and business buyers from different countries and private buyers from different countries.

I think we currently have no international regulatory system that covers this (I could be wrong)?

Yes I also don't think that the private buyers are considered as a separate category but on my opinion they have to be. I'm not absolutely sure but for one reason or another most the sellers (if not all of us) are registered with their local Tax offices as freelancers or companies which is not the same for the people that are here only to buy.

Sorry I probably don't understand your issue, the way I see it is that I'm paying my chare of the business transactions performed between EU members, I'm making the profit isn't it?

I don't know how it works in your country but where I live the deduction is a system for deducing expenses, not to pay less taxes or something?

That it is only partially regulated here and works differently is the problem of international institutions/regulations, but at least the flaws are in our favor (remember on only about 20% of total transactions VAT gets paid).

Or am I missing something in the picture?

Hey guys,

If the buyer and the seller are both registered as companies in EU, the VAT is 0%.
If the buyer is private, then the VAT is counted (the number may also vary on the buyer's country).

Also, as iterateCGI mentioned above, more sales are from countries outside EU.

Best Regards,
Eduardas

Thanks Eduardas:) It's all clear now. Have a nice day everyone!

Thanks Eduardas for the explanation. Much appreciated.