Let’s ask the question in other way
Now there are 2 type of non US author one with 0% tax and the other with up to 30% tax
so when the 0% author get a sale hows pay the author fee tax?
if the answer is envato that mean envato should pay the author fee tax for the 30% author
and if the answer is envato don’t pay tax for the author fee of 0% tax
so the author of 30% tax must also not pay tax for author fee
please correct me if i am wrong
I think another big issue is why a Tax ID Number is absolutely required for Non-US authors under the threat of not being able to benefit from the claim treaty benefits. It feels abusive, especially considering this is not the first W8 form I’ve had to file and on each one there was no need for a Tax ID.
In my country is difficult to get to the Tax ID and many people do not have it, I have already completed W8 form to another site and do not need to fill in Tax Number, only date of birth and work without problems.
I’ve been wondering about that too. Aren’t we supposed to be a Royalty-free market ? Why do we need to pay Royalty taxes.
According to this document https://ec.europa.eu/taxation_customs/tin/pdf/en/TIN_-_country_sheet_RO_en.pdf, can authors from Roumania use their CNPs as a foreign Tax Identification Number?
More details here: https://ec.europa.eu/taxation_customs/tin/tinByCountry.html
@collis Hello, I have a question for the team. If I’m from mexico indicating that I will get 10% less from each sale. If the active form will not or am unable to Provide a Tax ID Number
This would cause me ?, that the agreement of my country even that does not include my number or I just deducted 30% or 28% please answer this question will be fulfilled!
Thank you.
the truth gives me great sadness and frustration, I’m relatively new author, and everything was going well for me, now gives me great impotence because the authors were not answered all the questions, because they avoid answering questions, what happens envato?
Royalty free is because buyer doesn’t pay any more royalty for using the digital item.
Question is: why in every other digital store no one is paying the additional US taxes and, in general, takes higher share even if it’s non exclusive?
Hi @Frantic_Sounds, we definitely appreciate the complexities authors are faced with regarding this announcement and we are not taking this situation lightly. We can assure you however that we are not avoiding any questions. We’re very glad to answer any questions we receive, hence the threads we have open right now in our forums inviting feedback and questions.
We’re making a note of all the pertinent questions each day and we’ve been responding on a daily basis. If any questions you or any other authors have posted have not been answered yet, we encourage you to post them in this thread.
Meanwhile, please note the following which we hope will be helpful to you:
Here are all our announcements and updates so far that may also be useful:
Finally, you can provide the necessary information to us via your author settings page. This can be found via https://themeforest.net/user/PUT-YOUR-USERNAME-HERE/tax_information/new
Please try to check all these resources carefully before posting a question that may have already been posted/answered. In the meantime, we’ll try to get to everyone’s questions as quickly as possible.
Many thanks for understanding and for your patience.
I made an example for myself.I am exclusive author and currently i get 50/50 % share.
If i calculated good, from an item that cost 19$ i will be getting 5.32 total when my item is bought by the US buyer?
Please clear this for me is this right calculation?
After i read more than 1000 replies, I think Envato should help authors a little bit … How?? I understood from other replies there’re no Tax issues meet {US, Canada and UK} authors but their issues about withdraw their money in partnership case, BUT the most comments are about (non-US has no Foreign Tax ID) - There’s a large segment of people have this issue.
Of course i read the last article written by {natman} … But i’m still confused like others, because … I’m a (non-US, Nonresident Alien), I think the ITIN application (W-7) is suitable for me BUT it requests the Foreign Tax ID that i don’t have in my country like most people in other non-US countries (different systems from country to another) … so some people in forums told me to let it blank and send it (how about that!!? i think Envato Tax Advisor could explain).
Otherwise the EIN application (SS4) has a table in the last page has some cases my case is (If the applicant … is a foreign person needing an EIN to comply with IRS withholding regulations) so i should complete some fields not all and i don’t understand some fields like {Legal Name} is that mean my Nickname in Envato (Serpentsoft) and {Executor} mean my (real name)?? and some other fields i don’t understand very well like (County and state where principal business is located and Name of responsible party) … so i think the Envato Tax Advisors should help us and make some form examples for the most cases you see in replies and view it as pdf files online like (field 7b … enter xxx, etc.).
Another thing, You must provide the methods to get the ITIN or EIN like (by Fax, by Mail) and provide the numbers or mail address with expected duration to get it … it’ll make it easier for most people confused and don’t know what can they do.
I understand that you can say (Talk to a tax advisor or accountant in your country), i say there’re some cases need an international tax advisor to understand the IRS and the Double Taxation issues over countries while Envato Tax Advisor can exaplain some fields in (ITIN or EIN) applications for (non-US has no Foreign Tax ID) people and make it easier.
Finally, I’m happy for this step because it’ll help us to avoid the double taxation or decrease the taxes for U.S. buyers and may increase our sales like you said, but any new decision must meet some troubles but we can help each other to solve and facilitate obstacles we’ll face.
Regards, Hady (@Serpentsoft).
Question to Envato:
Why are you applying RWHT tax along with your buyer fee? Why do we have to pay tax on your income ?
We were prepearing to launch new items on TF under new brand, but it seems that we would need to open our shop as this is gross, wont help Envato on long run at all, ppl are slowly leaving and you really dont care.
You didnt tell us this when u introduced system when we became sellers, which was for this, and now you introduce it like 2 months before saying enough time to prepare us :)))
where are you from?
if i calculated good, you will get at least 6,65. it’s if your tax rate 30%.but maybe i’m wrong
I am from Serbia.I dont know if i calculated good because i didn’t minus the author fee.I calculated from whole 19$
Price of the item minus 20% which is buyer fee and then calculate 30% of that.
Pozdrav o7
6.8 
They are applying the tax after the buyer fee (to the $36) but not after the author fee because Envato considers the sale to be 100% your income (not their income) so they withhold 30% from that income amount (item price), THEN they subtract their author fees. The only thing Envato claims as income is buyers/author fees. Might not seem legal on the surface, because that author isn’t actually receiving any money at the point of sale, but by crediting your account with the full price of the sale and THEN subtracting fees, they can claim that you have “realized” income, and it is all perfectly legal. Notice how invoices work now - they credit you for the full price of the sale (after buyer fee) then subtract the author fee. Under the new system it will be credit you for full price of sale (after buyer fee), then withhold taxes (if applicable) and take author fees. Envato isn’t paying anyone commissions - even though that’s sort of how it appears on the surface to most of us - they are collecting fees. The difference is just how they choose to operate their business; they could claim all sales as their income and claim authors payout as expenses, but it’s not how they set up their business, unfortunately.
Important question for Envato :
WHY we don’t share the taxes if we share the income?
WHY it is not calculated from our NET income (50/50 and then 30%) ?
If you think this is okay, then why is it okay?
@collis @natman
Thank you
Your post illustrates perfectly why Envato is throwing authors under the bus. It’s pure business on their end and authors be damned. I come from a country that doesn’t have a tax treaty with the US with regards to software sales so I will be taxed the full amount and this makes me sad. Oh well… all good things come to an end.