Yes, the buyers fee isn’t a tax. [quote=“KoPro, post:22, topic:39239”]
If so, then Envato charge two times form a sale. At first 20% and then again 37,5% from item price as an authors fee.
This is kind of right. But the mindset you need to get into is that if an item is $10 and the buyers fee is $2… you’re not getting $10 and then having two lots of fees subtracted. You’re getting $8 with one fee subtracted. Your item price is $8 which is what shows up on your statement… the buyers fee is added on top but paid by the buyer, you never see any of that $2, so it;s not factored into the calculation when it comes to what you receive.
Not entirely sure why it’s calculated that way, but when it comes to paying tax it’s generally accepted that the correct procedure is to class the item price as your earnings, and the author fee as outgoings, so you’re then only liable for tax on the amount you actually receive (that’s tax in your own country… not withholding tax)… then if you’re in a country that has a tax treaty with the US, you can offset the amount Envato has already withheld from what you need to pay. So if you have $1000 withheld, and your tax bill for the year is $4000, then you only need to pay $3000.
One thing to note… whether Envato withhold 1% tax or 100% tax, it has no effect on their liability when it comes to tax. They can’t offset what you’ve paid against what they need to pay. They get two sources of income from the marketplaces… the buyers fee and the authors fee, which constitutes their revenue. What you pay tax on doesn’t alter their actual revenue, so the amount of tax they need to pay wouldn’t change whether you paid tax on the author fee or not. So you’re not paying Envato’s taxes for them.
Unless there’s some cunning tax avoidance scheme on the go which I haven’t managed to figure out yet… but the risk wouldn’t be worth the benefit. Prison time, massive fines etc etc… I can’t see it myself. It would have been easier to relocate to Andorra, Dubai or the Cayman Islands if they wanted to pay less tax.