Important Changes for Non-US Authors/Affiliates/Service Providers

Envato Announcements
405

Envato takes the majority of the share of the sale, so they should be treated as the sellers and not authors, I think this is not a difficult thing to argue. The minute Envato sets foot on US soil they should have complaints filed in the Better Business Bureau on this.

6 Likes
406

ITEM PRICE should go like this for the purchases from the USAā€¦:

ITEM PRICE = (ITEM PRICE) + (TAX PERCENTAGE ACCORDING TO TAX TREATY)

12 Likes
407

Hello @natman

Hope Iā€™ll get a reply :smile: Here are my doubts.

  1. The post says you will implement this from January 2016. But a Financial year starts on April. You also says that will provide a form in March 2017. If you are about to make this happen on jan 2016, Arenā€™t we eligible to receive that form for 3 months on March 2016 ?

  2. Once I filled the form, (Iā€™m from India and the treaty rate is 15%) Will you deduct 15% yourself and pay to IRS from the US customer? or do we have to do anything about this? when will it happen? Are we able to see the same in statements?

  3. From what rate 15% is calculated? if an item price is $100 and we will earn $60 as per this page So the 15% should be taken from this price right? If its $80, why I should pay tax for earnings to envato? So, you have to refund a % to us. right?

  4. The US tax is applicable for US buyers only. So, I have 3 sales, and 1 is from US and 2 is from others. Whether I should pay tax for the other 2, in my country right? If so, do you provide any additional form, with a total amount with Non US sales?

  5. Is there any option available for us to pay Tax rather than paying tax in US. I feel non-sense to pay the tax to other country instead of paying to the living country. How the country will develop then?

  6. Even if the tax treaty is 15% in india, Can I state that its 0% and pay tax here. And the end of each year I can provide a form to envato that you can submit to IRS?

  7. As many of us are either freelancer or business. As per my country, There are certain rules applicable where we can deduct our expenses, hosting charges and any other expenses. After deducting those, the final amount is called income or profit. So why we should pay tax for the complete amount?

  8. Why donā€™t you collect tax for US buyers extra from the list price? We are already selling on a low price. However for a buyer 15% of $17 template will be $2.5, thatā€™s just a price of cup of coffee for them. But for us, we can eat for a full day.

  9. The post says envato will give some kind of form to Paypal to prevent double reporting. is there anything similar for Payoneer? or isnā€™t that applicable?

  10. there are more to come as we get in to itā€¦

Natman, Can I get a reply? (only 9 questions)

26 Likes
408

I hope so because treating us as Direct Sellers is completely wrong.

3 Likes
409

Thanks. Confirmed from the first round of Q&A. Tax will be applied to the Item Price.

Exclusive authors will get TAX_PERCENTAGE (0% to 30%) less than their Item Price (regardless of the author fee percentage), whenever a US buyer buy their item after January, 2016.

Ref: Important Changes for Non-US Authors/Affiliates/Service Providers

cc @CreativeMilk

410

+100000000
Make it happen!

2 Likes
411

Is there any change on withdrawal method ? We are talking only about Paypal but many many authors get paid with payoneer specially in asia and africa. What about Payoneer ???

2 Likes
412

We already confirmed our country, is not much easier just to subtract the ā€œamerican percentageā€ from our sales in the US without all those nonsense?

413

Can someone answer this:

ā€œWithdrawals will only be processed to the nominated account holder payment details and the country must match the one on the completed W-8 or W-9 form.ā€

So if i donā€™t complete W-8 form i canā€™t withdraw money?

414

On this market authors arenā€™t the direct sellers but Envato. So how envato can imply the tax on authors head.
Even if you say authors are the direct sellers, then we have the right to apply that tax percentage to the final bill of the buyers invoice, right? Can we have that option?

3 Likes
417

exactly! If I am the direct seller, then itā€™s up to me to sell my item for 100 USD or 1 USD. I should decide if US citizens are allowed to buy my items and certainly decide if they should pay for THEIR taxes.

3 Likes
418

Can someone explain how much EU buyer will pay for product which today cost 10$?

Now I must pay 10$ + VAT = 12$. How it will be look from January?

1 Like
419

There is no change for buyers.

420

@Bedros Is the TAX going to be deducted from the LIST Price ā€œthe one shown on the items pageā€, or after envato takes its share from that price ??

421

So when there is no change for buyers why it is bad information for sellers? Taxes are paid one time (so why Seller and Buyer will pay together?)

422

My country didnā€™t signed treaty with USA, so I will lose 30% of most of my (US) sales, great, ā€¦

423

Exactly!!!

3 Likes
424

Itā€™s strange that as author I have pay tax of US citizens, why not charge them extra let them pay tax.

3 Likes
425

thatā€™s really weird.
here you are the seller, you cannot decide your prices, you have the lowest share and you have all these tax hassle
on other markeplaces you are not the seller, you decide the prices, you have higher share (up to 70%) and you donā€™t have all this *** regarding EU VAT or USA tax.

how to explain it? whatā€™s wrong??

2 Likes
426

List price minus buyer fee.