How does Envato taxes work?


#1

Hi everyone, I sold an item worth $17 but only earned $4, how does this happen yet I pay taxes in my country and I have filled my tax information at Envato?


#2

First you’re an exclusive author ?
Secondly, you filled a tax form in W-8 ?
In the third purchase was from the USA ?


#3

Yes, I am an exclusive author
yes, I have filled the tax form.
yes, the purchase was from USA


#4

Its a hypothetical question - How taxes work? :slight_smile:

If I sell a $16 item (themeforest) to a US buyer - I get $6.37 after deduction of buyer fee, author fee and US withholding tax.

Better share the screenshot so members can understand what was wrong.


#5

So you took the tax for buying (audiojungle) from the USA for$ 17 is 4,5$ ? that’s a lot !!! For example buy from USA - cost 19 $ the tax will cost 1.52 $ !!! Contact support ! or reconsider tax filling out the form !


#6

Oh! just made another sale to a buyer in Portugal and I got $8, this isn’t bad.


#7

I guess there’s something wrong with your Tax Form. Try to update it.


#8

Let me review it again


#9

Kenya has no tax treaty with the USA!
You filled the W-8 form but without tax treaty you have to pay 30% tax on US sales.

PHP scripts = $4.00 fixed buyer fee
Author level 1 = 37.5% author fee

US sale:
$17.00 - $4.00 = $13.00
$13.00 * 30% = $3.90
$13.00 * 37.5% = $4.87
$13.00 - $3.90 - $4.87 = $4.23

Non-US sale:
$17.00 - $4.00 = $13.00
$13.00 * 37.5% = $4.87
$13.00 - $4.87 = $8.13