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

ha ha I am in Croatia. we have 25% tax, so it seems that I’ll be in slightly deficit :cold_sweat:

1 Like

Envato…Congrats for your expand to US. :joy:

Please review again about your policy. Why you do not apply same mechanism to US buyers same as EU buyers too. They (EU buyers) must pay for the tax now, and US buyers must pay tax starting in January 2016… https://help.market.envato.com/hc/en-us/articles/204416900

I think it’s will great solution. Both for US us (envato and author).
image

2 Likes

Ok Envato. I still think this is a poor decision, not for the short term finances of your company, but yes for the long term because you are giving the opportunity for your competitors to get stronger and because you are demonstrating that you don’t care about the people that make you rise. Ok, it is a business, and well, it is “your business”.

I have been reading unlikely proposals for solutions, 80%-20% (but why to move to improve sales, if at the end, with a 80%-20%proportion the earnings will be the same or lower), charge the buyer with the tax (same thing, you want to attract customers, not scare them away, and charge every item with +20% will leave the sales more or less the same they are now). But what about improving your service to authors, I’m new to Envato, and I can say already your service is, saying it kindly, bad. It seems you have a team too small for review, you do not answer questions (most of the time) and the messages in soft or hard rejections are too generic. So, what about giving the authors more information on rejections, really help them (us) to improve, and have closer communication, in general, improve your relationship with authors, it seems you really need it, for what can be read in here. I’ll gladly pay 10% of my earnings (or 10% 15% tax) if you get involved with real feedback. Anyway, the review team is already doing the review, so why not let them to write some more words??

2 Likes

Other marketplaces are also affected by this US withholding tax, see here

2 Likes

“Envato Expands to the US market”
, but who prevented American citizens to buy on Envato before. I see no difference in the new business strategy. Products are available to everyone right.
In my country tax is 25% and there is no agreement with the USA. So how am I supposed to pay 50% to Envato.

I’m seriously thinking to pack my things and move to one of these GREAT, BEAUTIFUL, RICH countries which have good connections with America.
Maybe that will cause global migrations :flushed:

3 Likes

Sorry, you are over emotional. On every cent that you have earned they earned too, and they earn from other things.

2 Likes

2 Likes

ok let’s see this case objectively, The US Government have their rules, The Australian Government have their rules too and in some point we have to obey them, Envato, trying to get the US market have to obey them too, but let me get this straight,

Just selling our items in the rest of the world we have to pay a 20% fee and a 30% of “Taxes” in Australia?

If one of the items is purchased in the US we have to pay 20% fee and 30% of Australian “Taxes” and other 30% of US “Taxes”

Do i have to pay 30% of Australian “Taxes” if the item was sold in US and in that order the website is selling from the US and not from Australia.

it would make sense if i just pay the 30% of Australian “taxes” in the rest of the world and just the 30% of US “Taxes” not both.

“Taxes” is in quotes becouse i think the 30% that we pay now is in taxes.

Please Envato Team Explain.

2 Likes

If a buyer from US then, Item price = Item price + 30% of item price, it will not affect any author(but buyers from US, because Envato want to move US).

Envato to US - Authors to exit

3 Likes

Move anywhere…
Move to US or move to antarctica…
Why disrupt authors with tax(for your move)?

Next envato planed to move Mars, the mars tax price will be 90% of the item price.

Get ready folks

17 Likes

lol… :smile:

This explication I do understand :slight_smile:

Hey guys. Here are some of my doubts.

1. Before you moved to the US, who was paying tax for the US buyers? From all this, I get that you have to pay tax according to your country’s treaty, which is 5% for Australia. Were you (Envato) paying this 5% before moving to the US? What will you be paying after this?

2. For a global online market, what benefit does it brings to open an office in US? The blog says:

  1. being in the US will help us service US buyers with more targeted payment methods
  1. We’re aiming to introduce more options for US buyers. Currently we turn away qualified buyers because of our limited options.

What payment methods would be these? Is there some data that shows the % of buyers that couldn’t buy due to absence of these payment methods? If so, what was that percentage? Are there any additional benefits than these?

3. As per @natman 's example, the tax calculated is on the amount which includes author fees which we technically don’t get credited in our accounts. This amount goes to Envato. Is this calculation correct?

4. During EU VAT discussion, you said Envato will be the “Seller” only & only for EU VAT purpose. Now authors are paying taxes, does this mean authors are the sellers here for US buyers?

I’m a small author and most of my work is in partnerships. Irrespective of your answers, this should be the start if not an immediate end of the journey on Envato for many small/mid authors like me. I won’t whine no more as you’d prolly have discussed this and made a decision what’s best for the Envato Business. Looking forward to the reply.

2 Likes

Sure, with a difference. You can set your own price proportionally to the situation , which I did and get a basic 70% of the share. And my sales increased there…

Please! If you think that Envato created you and you owe them what you are today, then you really have a problem. Without your work you never would get to what you are today. So the biggest influence comes from your work. You make business with Envato that is beneficial to both of you, that’s all and that’s fine.

1 Like

I’m so tired of being here… I will continue to work for them until … :cold_sweat:

1 Like

Time to take decision

Need a final conclusion: Envato is Buyer or Author friendly
If Buyer Friendly:
– Use this new announcement(move to US)
If Author Friendly:
– Make this change: if a buyer from US then, Item price = Item price + 30% of item price
If Buyer & Author Friendly:
– Stay in AUS

And, why Russians and other peoples need to pay tax to America!(Currently who pay this 30% tax for US Sales?)
Why we pay the money against us…!
We may assume, it is US Friendly market?

8 Likes

Envato moving to US so they can accept Credit Cards payment from anywhere. The cost for receiving the credit cards payment from Australia wont be affordable to them- :wink:

Not IPO, they wont sell it out either this soon.

1 Like

Now I will print your post and hang it over my bed!
I would write the same and I’m glad that I’m not the only one!
All the best for you!

I am a Non US person so I will be filling the W-8 form.

It is said in the announcement “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.”

Which country must match? … country of citizenship? or country of residence?

I am asking because I am planning to move abroad next year so can I withdraw the money there?

and do I have to pay the US RWHT totally from my “net earning” or do I split it between Envato and me ?