Thanks ! ! !
Other than split payments - As far as I know there will be NO TAX CUT for the December sales.
In other words, the money we will withdraw at the JAN 15th will be as usual, no tax cuts from USA.
@natman please also confirm this.
For example: I withdraw the money on December 30, but they will come through skrill January 15 (as we quadrupeds new tax comes into force on January 1) whether the taxed withdraw ???
Question: I’m in a country (Colombia) that doesn’t have a tax treaty with US according to the IRS page:
But in the “Frequently Asked Questions” of the Envato help page, there is this text:
“Alternately, you can apply and get a US number called an ITIN. There is a simple application process with the IRS that involves a form called the W-7.”
If I complete the W-7 form successfully, I will be free of this disastrous 30% withholding rate? Or there is anything else I can do to avoid the withholding?
Hi All, just a note that I’ve posted a new updated forum thread with the promised updates on split withdrawals.
So, there will be NO TAX CUT for the December sales.
In other words, the money we will withdraw at the JAN 15th will be as usual, no tax cuts from USA
If your country does not have a tax treaty, getting an ITIN will not help you. Unfortunately, 30% of your US sales will be retained.
You still need to complete the W8 so that at least your non-US sales will remain IRS-free.
Ok so is envato going to collect taxes from usa buyers to pay for the taxes? I mentioned before Eu buyers pay 20% VAT on every purchase. I do not see any taxes added to USA buyers so i would like to know where is this money going to get paid from? I have a 0% withholding tax rate with the USA so it means i do not pay them a dime but still i do not understand how is envato going to collect the taxes like from the Eu buyers. This is absolutely not clear.
Also anyone could post a link to the w8 forms for non usa residents.
man, tough business with all these commissions/taxes, seems like we’re being left to chew on the leftovers …
Envato will deduct the amount that needs to be withheld from the author’s earnings, and then send it to the IRS. US Buyers won’t be charged any extra, as it’s an income tax that is deducted from earnings, not a sales tax that is added to item prices.
The W8 can be found in ‘settings’ and ‘then tax information’.
Thanks for answering. You are right about this but I still had hope about this subject so I sent my question to support and this was the answer I received (I just want to be absolutely sure about all of this)
“Unfortunately we have to apply the 30% tax rate due to the lack of a treaty. The TIN is required for authors that are from a treaty country and we need this to be able to apply the applicable tax rate as per their country’s treaty.”
Really bad news for a lot of authors…
Do we need to provide a foreign tax id number to get a tax treaty ? or is it enough that we live in a country that has a tax treaty ?
In order for the tax treaty to be applied, you have to provide a Foreign Tax ID number.
If for some reason, you do not have an FTIN, or if your country does not provide one, then you have to apply for an ITIN by completing the W7 form and send it to the IRS office in Austin (process takes between six and eleven weeks!!).
Basically there are 3 possibilities:
1) You don’t do anything:
The IRS will assume you are an American taxpayer that has not done a proper declaration and they will retain 28% on all your sales.
2) You complete the W8 form but you do not provide a FTIN/ITIN and/or your country does not have a tax treaty:
The IRS will retain 30% of your US sales
3) You complete the W8 with a valid TIN and your country does have a tax treaty:
The IRS leaves you alone, yay!!
Sorry to be pedantic, but it’s 28% of all sales if you do nothing, and if “You complete the W8 with a valid TIN and your country does have a tax treaty” then the IRS might leave you alone, they might not. It depends on the rate of the tax treaty. In France its 0%, so you’re all good. If you’re in India or Egypt, for example, it’s 15%.
Otherwise, all very sound advice from the purple frog!
Right, sorry about that.
I’m no frog though!
For Romanian authors: which one do I use?
my CIF of my PFA (Cod Identificare Fiscala) -> financial code
my CNP (Cod Numeric Personal) -> unique personal code in Romania
People in another thread said that CNP is fine, I just wanted to be sure.
Here is the official European documentation on TINs for Romania.
Oops, not had enough coffee for my eyes to work yet. Sorry!
I have to say that for a long time I thought your name was PurpleFrog, too! That is until someone pointed it out a while back.
I guess I read it as “Frog” the first time and never gave it a second thought!