Meh. Just meh.
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Hi friends, anyone know how I can get my tax ID number ?.It is that all this seems confusing. I am from mexico.
Someone please elaborate, how it affects withdrawals from Payoneer?
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I have the same question
I’ll be withdrawing my items from the audiojungle market at the end of the month.
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Hi all, here’s the first round of Q&A. We’ll collect new questions as they come in and aim to post another batch of answers in the next day or so. Thanks!
That’s correct. The rate and process to claim back your tax credit (if eligible) is different from one country to the next. Please check out the help center article (particularly the FAQ section at the end) for more info and consult a local tax advisor for country-specific details.
Yes. The restriction of one withdrawal destination per month is at the Envato user account level, not the PayPal account level.
For countries with a 0% royalty withholding tax rate, authors who submit a validly completed W-8 form will see no reduction of income on Envato Market (and no tax credits).
The tax is applied to the Item Price that an item sells for. A specific example might help in this case.
Take a Magento theme, that has a List Price of $100. In this example, $20 of the list price is Envato’s Buyer Fee. The Author is charging an $80 Item Price on that Magento theme, and if sold to a US buyer, then US RWHT tax will be applied on this item price.
In the case of an author in a country with no tax treaty, then RWHT is 30% if the sale is to a US buyer. So $24 will be withheld and remitted to the IRS. For a non-exclusive author, $44 is charged by Envato as our Author Fee. The Non-exclusive author will receive $80 - $44 - 24 = $12 in this example sale.
Only sales to US buyers will have this tax applied. But I agree, it’s not great for non-exclusive authors, and something we’re reviewing.
If you don’t complete a W-8 form, we’re required by the IRS to apply something called the Presumption Rules. They are a series of complex rules, and the upshot is that we presume that you are a US author who has not completed a tax form, and therefore Backup Withholding of 28% of all sales is applied.
In order to lodge Form W-8 we do not require you to register with the IRS the form will be accepted with your local tax identification number.
Not quite, WaveNebula. If your country doesn’t have a tax treaty with the US and you’ve completed a Form W-8, you will be charged 30% on the Item Price to US buyers only. If you don’t complete a Form W-8, then we are required to follow a set of rules that defaults to assuming you are a US author who has not completed a W-9 form, and are therefore subject to Backup Withholding tax of 28% applied to all of your sales on Envato (irrespective of where the buyer is based).
For countries with a 0% royalty withholding tax rate, authors will see no reduction of income (and no tax credits) on Envato Market, provided they submit a valid Form W-8.
Our analysis indicates authors should expect around one third of their sales to have US RWHT applied.
Our approach to author collaboration hasn’t actually changed. We’ve had this Help Center article about author collaboration up for some years which sums up our approach on this subject. You are correct however that our withdrawal system will be a lot less flexible. This does mean some authors will need to rearrange their cashflow practices.
Because there is so much variation from country to country, it’s best to speak to a tax advisor or accountant to work out what is the appropriate number to use in your country.
Here in Australia for example we have a system called the Tax File Number (TFN) which individuals or businesses can have, and you have to go to the tax office to apply for one. Different countries will vary.
As per the IRS Form W-8 instructions (see Line 6), if you don’t have a foreign tax identity number, you are not required to provide one and you can leave this question blank.
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it may be less for your country , not for all authors .
Hi, this question is for envato team, you say that in case of not having tax ID number can be left blank in the document that. But the system will not let me form my case. I listed as mandatory and I do not have an ID.
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When you are making 12$ for 80$ item you need to seriously question your business model…
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Thank @natman for your reply, my apologies for stupid question, I have nothing with Tax at my country and it isn’t problem for working with my Government.
so what should I do?
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Thanks for this first round of answers… it appears it’s indeed as bad as many of us were fearing. I asked the following question which hasn’t been answered yet:
What will happen to the personal information I put in this form? Is this all sent to the US government?
Along with more growth opportunities, being in the US will help us service US buyers with more targeted payment methods leading to better conversion rates and happier buyers.
those are just nice words and marketing - all this is just probably some tax evasion or other serious stuff we don’t know and won’t know true about - I can’t imagine any other reason. As chilly_orange said “US buyers already had access to the market sites;” and are already responsible for 60-70% of sales (at least my sales)
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As I understand, if I don’t have Tax ID number I must fill physically the W-8 document (leaving the line 6 blank), scan and send it to Envato instead of filling Tax insformation in my profile.
Is that correct?
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pls give u a break … lol i am laughing out loud with this one lol they are basically having a very huge deal of their sales in USA today and they will expand there lol when they have lots of developing countries and territories in which sales are rather low despite markets are expanding and they will choose to go where they are very strong and get stronger there , in other words, they will probably get a bit more sales but so very much of them, really ? when u are at capacity 80 % for instance are u having so much potential to grow that very big again? or is that by developing where sales are not so huge at this time that u can have a spectacular increase? i don’t know why but in my case, i am likely to believe that this is where u have small market that u can grow really way bigger , not the other way around … . One last thing, this marketplace system is increasingly known in USA … and that’s why u have such a huge amount of sales from there , both from professionals and from private people who need an invitation or whatever … i am really not sure that knowing just that this whole development thing is a smart move … time will tell, but authors get ready to get even less money at least if this is not what happens that will be the miraculous surprise that u could not expect for in the first place …
I get the same question …
well buddy, sometimes more tan this indeed … my for last sales are all coming from uSA … basically if we thing about this , this means i am losing much money with their incredible new introduction and as for their supposed good things that it would bring to all guys, let them show us first and we’ll probably believe in it … why investors hugely like developing markets, that’s because there’s a lot to do unlike what happens with highly developed one … but it seems that here they bet on the other way around …
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Bad news ( Very bad news…
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So now no more 50%? Atleast increase the percentage being paid to authors which will balance things out.
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and respect for the other, I have to say and complain that I think a very bad practice envato right now. While it may attract more sales, it affects the majority of authors and worse in countries blocked or no treaty. The only solution I see is to increase commissions exclusivity and non-exclusivity. It is a critical but constructive and formal complaint. I think the market we all do, not only American authors, or elites, etc, much less envato !, but each author and each buyer.
Just to be be clear, here is what I have read
"Hi, we’re going global and you’re life here is going to get more complicated, with less money per widget and more paperwork. Enjoy!
Oh yeah, feel free to pack your bags and go home to mummy if you can’t hack the pace.
Yours sincerely,
The people you make money for!"
Simpols 
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