Foreign Tax ID number

Envato Authors Author Hangout
1

Hi there, I have a question about the new envato policy which requires authors to add a tax id number.
This is my situation, I’m 20 yo freelancer from serbia. Now, I dont know about other countries but in Servia only companies have the tax id number, and not citizens (individuals).

Do I have to register as a company to get taxid number and provide it to envato or there is another way?

If not, the price of registrating a company in my country is much more than what I make on envato marketplace.

Did any of non-us users have this problem, if so, please share it
Thanks, cheers!

2

Hello,

Serbia doesn’t have a tax treaty with the US so it doesn’t matter. Even if You fill in your tax id number 30% will still be deducted from US sales.

3

Thanks for reply,
Yesterday I had my first sale in this year of item Total SEO ($21), purchased from Germany, and I got only 5.80 brcause of the tax rate.

Now, why did envato apply the us tax withholding when the buyer is from Germany and not US?

4

Hmm, not sure, I would fill in the W8 form in the settings and resubmit again, if you haven’t done already.

5

That’s “Backup Withholding Tax” = 28% on all worldwide sales, because you have not submitted a W-8 form(even without Tax ID)
details: https://help.market.envato.com/hc/en-us/articles/205658994-Tax-Information-Form-W-8-Requirements-for-non-US-Authors#backup

6

I did submit w8, twice…

7

The withholding is based on being a US author and not where the buyer is from. Without completing the tax info for your account Envato assumes that you are a US author, thus withholding the 30% (or whatever the percentage is).

8

The same questions to me, where I can find the foreign Tax ID? I’m from China.

9

You need to ask your tax administration to know what your TIN is.