Help to understand the new TAX

Hello,
I do not understand, the new tax will increase price of the templates for US users, or they will just take 30% from my revenue?

No the prices won’t be increased for US buyers. if you complete the W-8 form, 0%-30% (depending on where you live) of the item price will be taken from your US sales. otherwise, 28% of the item price will be taken from all your sales.

Does this also apply if I choose “Foreign Tax Number” and fill in “Not provided”?

Yes. Anyone who goes for ‘not provided’ will have 30% withheld from just US sales no matter where they live. Although, by filling in the form, they’re declaring that they’re not a US tax payer and won’t have 28% withheld on all sales.

I am confused. My country (Netherlands) is withholding 0% tax.
But by filling in “Not provided” as in Tax Number, “Withholding Tax Rates Country list” has no effect?
In order to take effect, I must apply for a Tax Number in my own country?

If you don’t provide a TIN, then the treaty is not applied. But you don’t need to apply for one, you most likely already have one. For the Netherleands, the TIN is a 9 digit number that can be found on your passport or on your Identiteitskaart.

Yes, you need to provide a tax ID number to benefit from the treaty. If you don’t provide a tax number, whether it be an ITIN or a foreign (Dutch) tax ID number, then it’s 30%.

Aha thank you. I do.

Thank you for clarification.

I did some research, I can not just enter my “personal number of my passport (9digit number)”, it’s needs to be registered in my tax authorities, so in the end I need to start my own business to get a registered Tax Number :pensive:

That’s weird. That’s not what is written on the European Commission site. Check this doc: https://ec.europa.eu/taxation_customs/tin/pdf/nl/TIN_-_country_sheet_NL_nl.pdf

There are other authors from the Netherlands, haven’t read about them having specific troubles with their TIN. Hopefully you’ll sort it out.

1 Like

Ah thx, just to be sure, I have entered my tin number of my passport. Thank you for your help.