First Sale but huge amount of Tax

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#1

Hey,

I just made my first sale :smiley: ! And I feel awesome. However I have a question about the tax I was charged. My item is for sale at $32 and I should be earning around $17.50 per purchase. I live in Ireland, but for some reason when I sold the item it said I had to pay a huge amount of tax as US Backup Witholding tax. I don’t understand this as I am an Irish Citizen.

Can anyone explain? I feel that receiving only $9 for a product which I priced at $32 is a bit unfair considering the amount of time I have put into making this product.

Kind Regards,
Mark Barrett


#2

You need to fill the W8 form with a valid Tax ID and you’ll no longer have this US Backup Withholding Tax. You can find the form in the ‘settings’ tab of your dashboard (Tax information)


#3

You need to submit your location and tax code to Envato

go to https://themeforest.net/user/username/tax_information/new

at the bottom select I am not a US person and fill out the form.

Without the form Envato don’t who where you reside legally and charge you 30% holding tax, but when you tell them you are Ireland based then I believe this is dropped to 5%.


#4

Sweet I appreciate it! I filled out the form there. Do you know if the tax is refunded once they know who I am?


#5

No backsies. You can ask for a Tax Recap at the end of the fiscal year. This document may then be used with your fiscal administration to try and get some sort of deduction on your own Irish taxes. No guarantees though.


#6

Okay thanks for the help!