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

As per the IRS Form W-8 instructions40 (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.

So I Think it’s not required to provide an foreign tax identity.
I have entered ‘None’ in the text input.

Hi @onioneye. Just want to remind you of our community guidelines: In particular, please do not spam, troll or flame. We appreciate the gravity of this subject matter for all authors and Collis mentioned this several times in his announcement:

This is a substantial announcement with a lot of impacts for authors, affiliates and service providers on Envato. Some of the impacts are pretty big, and news about taxes is generally never something anyone wants to hear!

I wanted to stress that this set of changes is not one that we’ve taken lightly, and we’ve put a lot of effort into considering and weighing up the trade-offs for our users.

On balance, I believe that this is the right move for Envato and our community overall. Ultimately growing in the key market of the US will lead to a larger revenue pool for authors on Envato Market.

Source: http://inside.envato.com/usa-tax-withdrawal-changes/

We have two separate threads here for US authors and non-US authors to post questions, feedback, and discuss the important changes. Everything is being read, and each day we’ll get the right people to answer all the pertinent questions to help clarify anything that is not clear and we’ll do it as soon as possible.

In the meantime, please ensure you are complying with our community guidelines to ensure the conversation here is civil and constructive. Thanks again for understanding. :thumbsup:

I find it kind of funny that of more than 500 comments here bashing at Envato for their decision, not many have realized that all the other marketplace operate in the same exact way. Yes, it’s the same, go search for it on Google, you’ll find the same exact information with the same forms that need to be compiled. The only difference I’ve found with another marketplace is that their W-8BEN form ( for non-us individuals ) doesn’t require a foreign tax identification number but you can use the date of birth.

I’m not defending Envato. I’ve got nothing to gain in defending them. I’m just saying that the situation is the same everywhere as far as I know. Claims such as " I’m leaving the marketplace and going to be an author on another marketplace " have no sense.

3 Likes

That’s my worry, too. In the CMS category, I feel there are many authors who don’t deserve to be there (ie. submitting 1-2 low quality themes per week, spamming market) and I’m hoping these new policies run them out of business. In this regard, I’m very optimistic about the new changes. :smile:

At the same time, there are a lot of talented authors here who deserve every penny they make. I think the outcome of the new tax policies will be decided by very very large WP authors on ThemeForest and CodeCanyon. If they decide to leave and take their customers with them, we’ll all suffer as a result. :confused:

I don’t mean to disregard non-WP authors, but lets be honest, WordPress is ultimately what makes this whole operation what it is.

Yes, but Envato had the opportunity to unload all that burden from authors, and decided not to. How? Easy. If they are sellers to buyers, and we are only supplier Envato purchases stock items from to sell to buyers, they are the only one that is responsible for paying taxes like this one. When VAT was introduced by Envato a year ago, the same thing was mentioned, but we never got clear answer.

I am working with MyCommerce and FastSpring services, and they operate in this way, they are direct sellers and they have taken responsibility of paying taxes and all other things around the world. There are no needs for W8 and other things at all. And they take 5-10% of the price, tax is added to the price when applicable. They don’t promote your items as Envato do, but they take all the legal and tax burder from the authors, and authors need to run own websites/stores but remain in total control over the profits since taxes are taken care of by the real seller.

Envato basically does the promotion only for authors (and that is questionable), and have large market, but they have dumped all the problematic stuff to authors to deal with.

2 Likes

Is not a worry, is a wish. More competition, better conditions for us.

Anyone knows how much rate is for England ?

If anyone knows, please let me know…

Thanks…

so authors ask us to speak up on twitter and you FLAG the post? why?

I think that with only one announcement, Envato will lose lots of authors… on one hand, there are authors who cannot create stuff anymore due to the fact that US doesn’t have a thready with their country and the taxes payed are to high so it’s not worthy, and on the other hand the authors who are partners in different accounts ( some of them in different countries )… In my case, the US tax is “only” 10%, however, i won’t be able to continue to pay my partners because i need to pay extra taxes for their money…This means that if i cannot buy-out my partners so i am the sole owner of the themes i will have to remove the themes on the accounts where i am a partner.

Good job Envato :smile:

p.s. waiting for the announcement where you say you were bought by a big company from US :slight_smile:

3 Likes

It’s “0” (zero)…
So you’re on the lucky side.

1 Like

0 (zero). If you’re a company or an individual.
Not applicable for LLPs, though.

??
Sorry I’ve not understood

Hi friend, what is “LLP”?
Thanks for all.

@natman One question directly from my accountant: starting from Jan 2016, where money will come from?
Do I have to invoice Envato Australia or Envato US?

1 Like

I don’t have a TIN and the field can’t be blank. I read most of the posts and I still don’t know how to get it :frowning:
@natman can you explain more about this?

Questions for Envato, please answer them.

  1. What form should be used if someone runs business on Envato as company in their country, not as individual?

  2. Is there any change in terms of USA taxes for authors from first question?

  3. What about authors who don’t have tax number, can they just skip that field?

  4. Is there any change in withdraw method, Payoneer and Skrill will still be option?

  5. My suggestion is to rethink about partnerships and withdraws on multiple accounts. I don’t get why you
    don’t make partnership process for authors more easily managed. Isn’t that your goal, to have teams?

2 Likes

Can you please share link of this document @Bedros :smile:

Thanks in advance… :smile:

Limited Liability Partnership. But that is not important, because Envato just kicked each and every partnership from Marketplaces:

As of January 1st 2016 we are streamlining our withdrawal system. Withdrawals 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.

2 Likes

https://www.irs.gov/publications/p515/ar02.html#en_US_2015_publink1000225127

Thanks very much friend, I really appreciate you taking your precious time.