VAT registration for EU royalties

VAT registration for EU royalties

Question:
Hello!
I have a question about reporting income from contest site 99designs.com. On this platform, you can enter a contest for something you've made - a logo, website design, branding, etc. If they choose you as the winner - you transfer the copyright to a client with a contract and receive the prize. As far as I understand these are royalties. Do I need VAT registration if the customer is an EU person? I did a lot of searching on their forum and the designers claim that they shouldn't as all payments are from the platform - the client pays the platform and if you are selected the platform pays the designer, but the contract is between the client and the designer. 99designs.com is an Australia/America based company.
Thanks in advance!

Answer:
Hello,
Since the contract is between you (the designer) and the end customer and on the basis of this contract you transfer your copyright to the customer and not to the platform, you are actually providing your service not to the online platform but to the end customer. The online platform simply provides an opportunity for clients and designers to meet, and most likely receives some kind of remuneration in the form of a commission (either from the designer or the client). In this line of thinking, we believe that if you have clients - companies from the EU, then VAT registration will be mandatory for you.
We hope we have been helpful!
Greetings!