I have one item with codecanyon, but from JAN 1 2016 US TAX withholding applied to only my US sales i think 30%.
My Item price is 19 author level 5 so i got 10.45 for each sales but when it comes to US i have received only 5.89. instead of 7.315 what happened?
Item price : 19/2=9.5
5th level 0.19*5 = 0.95
Final: 9.50+0.95= 10.45
30% withholding : 3.135
10.45 - 3.135 = 7.315
$1.425 missing???
But i get only: 5.89
30% comes from the original item price I.e. 19 that should bring numbers closer?
The 30% is taken from the item price rather than the list price, this is how the calculation goes:
List price = $19
Item price = list price - 20% (buyers fee to Envato) = $19 * 80% = $15.2
Now calculate the 30% from the item price = $15.2 * 30% = $4.56 (to the IRS)
Envato take 31.25% from the item price as author fee = $15.2 * 31.25% = $4.75 (to Envato)
Your net earnings = $15.2 - ($4.56 + $4.75) = $5.89
Thanks for the quick reply and now i understand the reason.
20% (buyers fee to Envato)
30% from the item price (to the IRS)
31.25% author fee (to Envato)
TOTALLY : 81.25% for me only 18.75% I don’t want to sell my item to USA buyers anymore.
You cannot exclude US buyers, but since you’re in India (as I can see), that 30% can be 15% if you submit a Tax ID Number (other Indian authors submitted “PAN”, they say it works), see this thread, it may help you a lot.