Receipt

@doru

Not real dollars pmsl.

This is circumvention at its best.

Legally ENVATO has to call them credits, schmedits whatever.

I gather you do not have a credit card processor ? By that other than the cyberspace paypal type.

Soon as you go to a real bank, and try and set up a “credits” system, the element of risk to the bank, and cc processor increases exponentially.

To do real time cc transactions, and not via non tax paying singaporian back street hypothetical offshore account, you cannot hold money on peoples behalfs and utilise regularised cc payment systems, esp. Via https.

You have to circumvent this by gong via paypal, and then you can do what you want , it seems.

As it stands your only transactional downloadable and printable and declarable asset is your paypal transaction.

Wow, I didn’t realise it would cause such a discussion. To be honest I was sure someone would just point me to the proper place and be done with it.

doru said
When you declare what income you had, you don’t say: I had 10000$ of earnings but I purchased 2000$ of items so here are 8000$. You say, envato payed me 8000$ and that’s that.

Doru, you have a red paw so you must have earned enough money to withdraw. I guess you spoke to an accountant about how to handle that money. What did that person say?

You see, beside those $8000 my company have increased its assets by $2000. I can’t just leave that out. So I need to declare the $10000 I made and the $2000 I invested. The way you look at it is from a private persons point of view. That running a company somehow magically takes care of itself.

The rest is covered by jonathan01 and SportTipsWorld. I still have to figure this out somehow. If someone has a tip on how they did it and still satisfied the accountant/tax agency kindly advice me

I wondered the same sort of thing about importing and exporting money from Second Life, so approached my accountant. Obviously I can’t speak for tax law everywhere, but as far as UK is concerend she told me that only money going in and coming out has to be accounted for, since the money is not available to the company as useable finances until you have withdrawn it. This is especially relevant when dealing with exchange rates, since the currency equivalent will change whilst held by Envato if your company banks using anything other than US dollars – accounting nightmare for me! So in short, what goes into Envato for me is an expenditure – what comes out is an income – beyond that, if the tax office want detailed records of internal transactions within Envato I can easily print off the statements they provide. That’s how my accountant sees it, so it’s simple enough for me…

The OP is talking about Purchases, not earnings

Yes, in that particular case the full original purchase of Envato credits would count as an allowable business expense. Only if/when funds are converted back to real currency would they count as income.

TheDigitalOrchestra said
Yes, in that particular case the full original purchase of Envato credits would count as an allowable business expense. Only if/when funds are converted back to real currency would they count as income.

So you can show me a receipt? For a purchase?

That ORIGINATES from envato?

No

the confusion in my opinion, derives from the fact that if you sell 1000$ and then you withdraw 800$, for some strange reason you want to declare 1000$ profit and to pay taxes for those money. But you want to not pay taxes for those 200$ so you need receipt (or whatever is called) as proof.

This is wrong and is very simple to fix it.

You get 800$ from envato you declare 800$. Nothing more, nothing less.

If you want invoice for 200$ you deposit 200$, you get an invoice, then you withdraw those 1000$ that you earned.

doru said
If you want invoice for 200$ you deposit 200$, you get an invoice, then you withdraw those 1000$ that you earned.

That, my friend, is the worst idea I’ve ever heard.

The UK tax system seems much easier. You could use the information on Envato without a problem, which we do.

Reachground said

doru said
If you want invoice for 200$ you deposit 200$, you get an invoice, then you withdraw those 1000$ that you earned.

That, my friend, is the worst idea I’ve ever heard.

My good idea was this one here:

“You get 800$ from envato you declare 800$. Nothing more, nothing less.”

don’t read only what you like.