List price for this one was $7, the sale was in Germany, so how does this work??
Can someone break this down for me please?
Also what is this 37.5%??
and 37.5% for this?
The tax thing hasnât started yet. Wonât start until January. The 37.5% is what Envato takes. The $1 is also what Envato takes. The $1 is the buyer fee, the 37.5% is the author fee⌠both of which go to Envato. From January on, Envato will also withhold a certain percentage on your sales (from 0% to 30% depending on your country and what youâve filled in) which is calculated on the item price. Which is the list price minus the buyers fee. Nice and simple! 
So when this kicks in, envato will take 37.5% 30% and the $1 buyer fee?
So if I am selling something for $7 how much will I keep??
Im from IOM/UK
If itâs $7, and the buyer fee is $1, and youâve filled in a W8, but not added a valid tax ID which results in you having 30% withheld, and youâve sold less than $3,750 on the site, thenâŚ
If you sell to a US buyer, youâll get $1.95
If you sell to a non-US buyer then youâll get $3.75
If you fill in a W8 with a valid tax ID, then youâll get $3.75 on all sales.
I have my Tax ID number , and I try to fill out a W8 but the format is for example XXXXXXX-XX and this isnt an accepted format for the number?
Do you know if the isle of man has a tax treaty with US?
Are you putting it in the âForeign Tax IDâ option?
Yes that worked now, in the foreign one.
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Itâs not on the list, but would it come under the UK? Iâm not sure on that one. If your tax goes to HMRC then I guess it does.
So that means they wont hold the 30%?
Well, thatâs the $1m question! Depends if the Isle of Man comes under the UK tax treaty, but if it does, and youâve filled in the form correctly⌠then you shouldnât be taxed anything.
Well, I had to select UK then Isle of Man, so hopefully.
Thank you very much for clearing this up for me much appreciated very helpful
No worries!
I dont even get a single thing about this W-8 thing. I guess Iâll just lose the 28% of the US sales then because I cant provide an ID. I am from Hungary
Just to clarify⌠itâs 28% on all sales if you donât fill in the form. 30% on just US sales if you do fill in the form, but donât provide a valid tax ID. 0% of all sales if you do fill in the form and provide a valid tax ID.
where do i get the letter from envato ⌠any links email?
this is proving to be a headache
Settings -> tax information
thanks 
âŚ
All this fuzz made me calculate my future income.
Say my item cost $22
$22 - $4.4 (vat) = $17.6
$17.60 - $5.5 (Envato) = $12.1
So, $12.1 is price iâm receiving at the moment.
If i get unlucky to have sale to States, how much would i receive from project that cost $22 ?
$12.1 - 30% US government donation = $8.47 ?
To summarize, $22 - $8.47 (profit) = $13.53 is gone
Sorry to be pedantic, but the $4.40 is the buyers fee, not VAT. If the buyer is from the EU, then the VAT is added on top of the $22.
And if your list price is $22, your item price is $17.60 and your author fee is 31.25%⌠then the amount youâll get after the 30% withholding will be $6.82
The 30% is calculated on the item price ($17.60), not the item price minus the author fee ($12.10)
Thanks mate, being pedantic is good and yes, itâs buyers fee not VAT.
As for price, i was afraid it would be as you said.
Instead of $12.1 from Jan. it would be $6.8
Basically 50% less income from US buyers, this is just pathetic and speechless.
But hey, who cares, if one author leaves due to less and less income, 3 new will come.
All good.