How does Envato taxes work?

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?

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

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

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.

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 !

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

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

Let me review it again

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

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