How does it work?

tips-and-tricks

#1

So, I sold my first item on graphicriver. The price of the product is $3 and my account balance showed $0.69. I am an exclusive author. Can anyone explain to me how it works?

Product Link: https://graphicriver.net/item/photography-facebook-cover/19554526


#2

First You don’t submited your Bangladesh taxpayer infos by compleating the W-8 form with taxpayer ID in your account settings = 28% US Backup Withholding Tax on all your sales instead of 10% US Royalty Withholding Tax on US sales only.**

  • On this market place the List Price = Item Price + Buyer Fee.
  • Buyer Fee in your item category on Gaphicriver is $1.00
  • As exclusive author you start with a author fee rate of 37.5%

for all your sales of this item now:
$3.00 - $1.00 = $2.00 gross income
$2.00 * 0.28 = $0.56 us backup withholding tax
$2.00 * 0.375 = $0.75 author fee
$2.00 - $0.56 - $0.75 = $0.69 net income

If you submit the W-8 form including your Bangladesh taxpayer ID you can benefit from the double taxation treaty between Bangladesh and the USA = 10% Royalty Withholding Tax only on US sales.

for US sales only
$3.00 - $1.00 = $2.00 gross income
$2.00 * 0.10 = $0.20 us royalty withholding tax
$2.00 * 0.375 = $0.75 author fee
$2.00 - $0.20 - $0.75 = $1.05 net income

for all non-US sales:
$3.00 - $1.00 = $2.00 gross income
$2.00 * 0.375 = $0.75 author fee
$2.00 - $0.75 = $1.25 net income


#3

Thank you very much :slight_smile: