60% Tax?

Hey Guys,

Made a couple of sales but was really surprised to see how much is held back.

Item was $15.00
Earnings said to be $5.40
But my actual balance for each item sold is $2.04 ??

That’s around 60% deducted for tax off of earnings? I emailed support and was told to fill out a W8 which I have done but wow does that ever seem steep? And they only mention up to 30% for tax…

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It’s a little bit strange.
When i sell to USA, on a $15 track, i touch 4$80 (we are taxed twice without the W8 form) and not 2.04…


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that sounds more reasonable.

$2.04 a track on a $15 sale is just… i dunno but definitely not what i was expecting.

From your numbers I’m guessing you’re non-exclusive. The US tax is applied to the item price not to your actual earnings. For a $15 tracks (list price), the item price is $12. So $12 is the amount your taxed on. Which explains why the tax is so high.

You need to fill your tax information so that you are taxed on your US sales only. Also, Canada does have a tax treaty with the US, so you don’t need to pay those taxes. Provide a valid tax ID and it will all go away.

yeah not exclusive, may look at that in the future but for now it’s hard to justify as AJ is so hard to get accepted into and the cut is so low compared to the competitors.

Thanks for the help… is a tax ID something I need to apply for thru the US? I noticed it on the W8 form I filled out but I don’t think I have one.

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you need to give your country tax id in my country it is called PAN CARD and Iam from India

No need to go through any process with the US administration. The tax ID number that you want to put in the FTIN field is your Canadian SIN. If you have one, you won’t be tax as soon as you fill it in.

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awesome, thanks!