Important change to US royalty withholding tax for Vietnam-based authors.

Hey everyone,

This is an important announcement to let you know about an error in the calculation of US royalty withholding tax for Vietnamese authors.

As you’ll likely be aware, Envato applies a 10% royalty withholding tax on sales from Vietnam-based authors to US customers.

The rate that we apply was taken from a recent agreement between the US and Vietnamese governments which provides for a reduced rate of 10% withholding tax on royalties. Upon learning of this treaty, Envato took the adjusted tax rates to be in full effect.

Unfortunately, we’ve recently learned that this isn’t the case.

Despite the existence of the agreement, it has not yet been ratified by the United States. The result of this is that Envato has been under-charging US royalty withholding tax to Vietnamese authors at a rate of 10% instead of 30%.

We will not attempt to recoup the cost from authors.However, we do need to ensure that the situation is rectified moving forward. As a result, we need to inform you that as of 8/9/2016 the royalty withholding tax for Vietnamese authors selling to US customers will increase to 30%. This will remain the case until the newly agreed upon treaty comes into force.

We apologise for all inconvenience caused as a result of this error.

Feel free to discuss the changes below, and if you have any questions at all about the error or the change you can reach us at

For more information on US royalty withholding tax you can view our announcement here:

So next time This means, when we sell a theme for US customers, Evanto charging 30% for author from VietNam ?

What?! my partner in Vietnam has been charged 30% since 2016 Jan.
Why do you say only 10% for such a long time?
Eight months, dude. We lost thousands of USD of this royalty withholding tax for an unclear treaty? are you serious?


Shot #1: limit submit 1 item
Shot #2: Up tax to 30% for us - 30% for envato : Author earn 40% of 1 sale.

–> Way to die for author.

  • 20% customer fee.
  • ~ 37.5% evanto fee.
  • 30% us tax.

If a vietnamese author sells a item $20, he gains $6.x. Yes, this is final bullet for the vietnamese author.


I think Envato need update the Earnings statistic page. Now it may not calculate US royalty withholding tax. So it make misunderstanding for author to know how many have they earned.

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We can complaint to VN government and tell them that we need tax agreements to USA. But that’s very hard dream when no one wants to reduce tax for communism. This situation is because the gov, not Envato, don’t attack Envato.


Boring announcement for Vietnamese author :frowning:

Sounds like he might not have fully completed a W8 form with relevant tax ID.

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As far as I know, tax of US authors is 30%, but they will receive a pension in future. Vietnam author won’t receive any pension from US, but still be tax 30%. It is not fair and ridiculous. Sadly for our authors from Vietnam. Please consider this carefully. Thank you!

Envato doesn’t take taxes from US authors at all unless the author didn’t fill out tax info or didn’t do it properly.

And in this case, Envato can’t “consider” anything. This is not an Envato decision, it is between Vietnam and the United States.


No, the wizard of tax information input here equal to W-8 as it stated.
@matthewcoxy: I just confirmed with him and he said he didn’t input any Tax ID number, so it would be the case?

Yeah, if you don’t enter the Tax ID number when filling out the W8 form, then you’ll have 30% taken from all US sales, no matter where you’re from.

Thank you for your quick response.
It doesn’t matter now as we all will be charged 30% for all buyers from US now until the VN gov has a better tax treaty with US gov. I doubt it won’t be soon. :pensive:

Best to add it though, so you can benefit from the treaty straight away if and when it’s implemented. Sounds like it’s pretty much signed off but just has’t been put in action yet, so hopefully that will be soon.

Hey folks, this is just a quick update to let you know that these changes are now live.

Any questions, please reach out to our team at

Think Envato don’t calculate for support. But tax applied with support. Now we feel “don’t want buyer from US” :frowning: we get only $16,56/59, but have more request support from US user. Whyyyyyyyyyyyyyyyyyyyyyyyyyyy

Do you get more sales from US users?

I get 45% sale from US buyer :frowning:, so boring

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I think Envato need update the Earnings statistic page. Now it may not calculate US royalty withholding tax. So it makes misunderstanding for author to know how many have they earned.