Author Fee and earning question

Envato Authors Author Hangout
1

Hi all, this is my new experience in Envato marketplace.

My question is: why do I only earn $3,24 on a $19 plugin on CodeCanyon?

  • I know that $19 is only the “Purchase price” and the real price is $19 - $4 = $15
  • Now I have to subtract 37,5% to $15 = $9.37
  • $9.37 - $2.62 (US Backup Withholding Tax) = $6.75

After this I’ve also another voice in my report with “Author Fee for sale IVIPxxxxxxxx” = $-3.51 (again?)

  • Then $6.75 - $3.51 = $3.24

Is this the real gain of my plugin? $3.24?

Thank you!

2

It’s because US Backup withholding tax. If you don’t send W8 form, I think there’s a cut around 20-30% more
Search the forum for w8 form and update your tax info

3

  • no taxpayer infos submitted = 28% US Backup Withholding Tax on all your sales

  • W-8 submitted without your domestic taxpayer ID = 30% US Royalty Withholding Tax on sales to US buyers only

  • W-8 submitted with your domestic taxpayer ID = 0-30% US Royalty Withholding Tax on sales to US buyers (tax rate depends on tax treaty between your country and the USA, if there is one…)