@collis@natman Hello again, although it’s the week-end, I continue my researches As said in my previous posts, in order to be able to submit a W7 form to the IRS in order to obtain an ITIN (individual) or EIN (company), we must submit some documents, including a document from Envato that explains that you require an ITIN/EIN from us. I know that Amazon requires an ITIN from their authors to fill the W8 form, just like you. Please check this link, this is the official letter that Amazon gives to their authors so they can send their W7 to the IRS : https://images-na.ssl-images-amazon.com/images/G/01/opt/general/test/Amazon_Digital_Services_ITIN_Letter_2.V155947091.pdf
We need such a document from you. It’s very simple to do and provide in no time to all of us, authors, who need to get an ITIN or EIN. The process to get an ITIN/EIN is much longer than 4 to 6 weeks (more a matter of 8 weeks, I let you do the calendar math…), so any time gain is welcome.
To all authors in the European Union who don’t know wether they have a TIN or not, please check this link and go to “TINs by country” in European TIN portal section.
You’ll know if you have one (with the format that you must use in the W8 form), if you can get one in your country of if your country doesn’t deliver TINs.
Hope this helps!
yes, we pay taxes everywhere. but let’s use your example, if the government decides that a restaurant must start paying 30% extra, would the owners be allowed to REDUCE the salary of their employees? I don’t think so, at least in my country this wouldn’t be allowed. they would either fire someone or raise their services price.
Thanks for all the information you’ve submitted, you’ve done a great work.
I have a question (the best question is the asked one ) - Don’T you have a TAX ID, or an ID number from your own country (in some countries, ID also is the TAX ID)? I mean, why would you wait for almost 2 months to get a TIN from USA-IRS?
@natman can you also clarify this? We are specifying the country of residence (which has a treaty with USA), and we are already withdrawing from the country of our residence. So, the ID Number that’s given to us from our own country should be enough, right? Our country has a treaty with USA, and we are living there, so why a National ID from our own country wouldn’t work? Doesn’t it all about proving that we are really living in (and withdrawing from) a country that has a treaty with USA?
This is from the excerpt of the Envato Official Thread…:
***If you have a tax number from your own country (i.e. a “foreign tax identification number”), then add that into the W-8 form where specified.*If you’re not sure what is the right number in your country, talk to a tax advisor or accountant. You may need to apply to your country’s government or tax authority.
Yes we do have tax numbers (in France in my case). But these numbers are not considered nor used as IDs in my country and thus this is not a TIN (this is well explained in the link from the European Commission, in each country’s specific summary). And our ID numbers (ID car or passport) can’t be used as TINs which are tax-specific. So we must ask for an ITIN/EIN even though we’re lucky ones who have a 0% tax treaty.
Some European countries have tax numbers that are also IDs (Poland for example). In this case, Polish people can claim their 10% tax treaty benefit using their specific tax ID that is considered as a TIN. That’s not logical, I know. But that’s how things are…
That’s what i mean help each other … i want to ask you about (if any) mentioned in ITIN application besides Foreign Tax ID and U.S. Visa fields is that mean leave it blank if haven’t one ??
###Repeating some important questions missed. (again)
1. As per US rules, tax should be deducted at the time of trade. That means, Are we able to see the US sales & corresponding Tax deduct in My Statements Page?
**2.**The US tax is applicable for US sales, so we should pay tax in our country for other global sales right? If so, at the end of each year, will you give us form splitting US sales anf Global sales?
**3.**The post says “If you withdraw to PayPal, we will ask PayPal to exclude your sales from PayPal’s 1099-K reporting.” Will you ask the same for Payoneer also?
4. How do we get a refund for the expense we made (eg: Envato Author Fees). Is there a provision for that? Who will provide the refund IRS or my country?
5. Also, any chance to a) Increase the item price (15%) to cover the loss? b) increasing author commissions up to 85% and starts from 70% instead of 50%?
I read that you will get ITIN in a week if you send your request by Fax and they need the official government’s Driver License / ID attached, but i don’t know send it in my language or after translate it!!?
Also, @natman , don’t you think that you need to add a 5th section to allow users to add ITIN (İF THEY HAVE ; because ITIN and Foreıgn Tax ID Number are not the same thing)
So, there is no way I can sell with Envato without having my personal info spread around on your invoices?
In that case it is sad because I would have to leave for that very reason. I am fine with the TIN and I have a 0 withholding rate so these changes would not really bother me, exept that I for a few very good reasons don`t want my real name to show up on those invoices!
This point was unclear, that’s why I submitted it. From what I read and understand : you can apply for an ITIN as an alien who needs it to claim a tax treaty benefit. And to be able to apply for an ITIN (and that’s the “basic” rule, I think our case is specific) you need to have already sold something to a US citizen (which is technically our case).
So, theoretically, and this is just what I understand from all this, you should be able to produce a document with the sales and what has been held for the IRS so you can get it back - and benefit from the tax treaty for future sales - (after all, that’s why you’re asking for an ITIN).
But in our case, we don’t have tax returns to produce, and I doubt that Envato can provide us with that kind of document. Thus the “Amazon example”. New authors on Amazon don’t want to see these “preventive retentions” for the IRS, just like us, so they fill their W8. As some of them, just like us, can’t give a Foreign Tax Identifiying Number and can’t produce a tax return (hey, I’m new, no sales!). But they still need to justify why they need the ITIN -> thus the official letter from Amazon, the kind of letter we need from Envato. And I guess this replaces the needed “valid tax return”.
So, for someone who wants to start selling in envato as an exclusive author:
Lets say a HTML template listed with a price of $14 dollars:
$14 * 0.8 = $11.2 this is the real price of the item
$11.2 - ($11.2 * 0.5 [comission or whatever you call it]) - ($11.2 * 0.1 [The tax in my country]).
To the author: $4.48
Yes, that sounds fair, and I don’t even want to make the calculations with the 30% for those who live in the not treaty countries or the non-exclusive authors, or the non-exclusive with no treaty, I think the last will end up in debt with envato for every item a US Buyer buys.
I would like PROOF that Envato is actually paying taxes with the collected money and I would like to see Envato add documents of paid tax receipts so I can present them to the tax authority in my country.
Staff, can you please update this page http://videohive.net/become_an_author#calculator (Calculating your income) with new rules?
Well, the old version will be in effect until the end of the year, and it should stay there for now. Maybe you can create new temporary page, and provide us the link, and publish it on Jan 1st 2016?
I hope that work on income calculator is in progress.
Thanks.
As said in my previous posts, in order to be able to submit a W7 form to the IRS in order to obtain an ITIN (individual) or EIN (company), we must submit some documents, including a document from Envato that explains that you require an ITIN/EIN from us. I know that Amazon requires an ITIN from their authors to fill the W8 form, just like you. Please check this link, this is the official letter that Amazon gives to their authors so they can send their W7 to the IRS : https://images-na.ssl-images-amazon.com/images/G/01/opt/general/test/Amazon_Digital_Services_ITIN_Letter_2.V155947091.pdf
) - Don’T you have a TAX ID, or an ID number from your own country (in some countries, ID also is the TAX ID)? I mean, why would you wait for almost 2 months to get a TIN from USA-IRS?
