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

[popraz]

Actually I think they said that only a third of all sales are from the US.

[meta4creations]

One of the reasons we initially split (bifurcated) the support price out was we were deciding how this payment would be treated. Unfortunately the US RWHT will be applied to the full Item Price (including the included support). However subsequent extension purchases will have no US RWHT applied.

It clearly states on our statement that a portion of what the buyer pays is a support fee for 6 months, so royalty withholding should not be applied, just like when someone buyers a support extension. Therefore US RWHT should only be applied to the price of the licence.

[Mock-Up-Militia]

@collis thanks for your responses!

[nickys]

I have a few questions:

• I’ve been to the US and I have a Social Security number and I entered that instead of Tax ID. Does that make any difference in the amount of tax that I pay?
• Quote from the original blog post by Collis:

Ultimately growing in the key market of the US will lead to a larger revenue pool for authors on Envato Market.

I really want someone from Envato to expand of this. How exactly revenue can potentially go up when Envato is a US company? How will it attract more buyers? Practical examples please!

• Does that mean even more transactions will show up in the Statement? I’m using the Envato API to create an app for tracking sales and it’s getting increasingly difficult to keep up with changes to the Statement. I wish we could avoid the constant breaking changes to the API, like first adding author fees, then separate transactions for item support, and now tax for US buyers. Some form of versioning for the API would go a long way. If someone is still using SalesRobot they should know what I’m talking about.

[themepassion]

Regarding Foreign Tax id:

I read through all 1000 posts, but still don’t understand, can we use Tax Id from country where we live (for example in Russia we have INN as identificator for tax payers) Can we use it in field “Foreign Tax Id”?

Yes, if you have a tax number from your own country and want to claim tax treaty benefits, please enter it in the “Foreign Tax ID” field on the online W-8 Form. Alternately, you can apply and get a US number called an ITIN (Individual Taxpayer Identification Number). If you’re not sure what is the right number in your country, talk to a tax advisor or accountant.

I believe this should allow using PAN as Foreign Tax Id for Indians (in India PAN is used for tax purposes and provided by local government)

[Sonicbyte]

Hi @natman @collis Paypal Question:
I’m not an US resident, but I do have an US paypal account, because at the time I started selling items at Envato paypal where unavailable on my country, so my brother (who lives in the US) open a US paypal account for me, with my name, etc. So I currently withdraw my earnings from AJ to my US paypal account and normally I spend my earnings paying for online services with paypal ( I don’t do withdraws to physical bank or ATMs)
So if I now fill the IRS form for non-US authors I still be able to withdraw AJ earnings to an US paypal account ? Or in other words…will Envato block withdraw earnings from non-US accounts to US paypal accounts ?
Thanks

@collis Hi Sonicbyte, unfortunately not With the new withdrawal rules, your payment account country must match the one on your completed W-8 or W-9 form.

@collis this means exactly what ?:
1- It means I will not be able to withdraw to Paypal without being charged in ALL my items sales with the new tax ?
2- it means I will not be able to withdraw anymore to paypal no mather what (like blocked by Envato) ??
3- If that is the case, should I turn my withdraw options to some other option like Payoneer, what should I do ?

Please I need a clarification on this.

THANKS

[ReyCommerce]

@collis Since you’re limiting the multiple withdrawals options, do you take in consideration allowing us to move our themes to different accounts ? For example, i now have 2 themes with 1 partners. I would like to move one theme to their account.

Best regards,
Stefan

[stardiva]

What information about the seller will be on customer invoices from January? Will it still be the company name and address or the author’s real name and address? If it is the real name, can you explain why this is necessary. Thanks

[thezoc]

Right, your country not have Tax Treaty with U.S.
You lose 30% of U.S. sales after 1 Jan 2016 .

[MbrEffects]

@collis
WHERE i’m i suppose to get Tax ID number !!!
there is a reason why i work in the web, avoid dealings with numbers and blabling with people.

[miseld]

Maybe Envato should consider to split advertising campaigns to send more non US traffic to non US authors so we can avoid huge drops in sales and minimise author loss.

[MbrEffects]

wait, 50% for me, 50% for envato . why don’t pay taxes from envato part ?
we suppost to pay everything, pay 50% for envato, pay for bank account services, pay to change from dollars to local currency, and now this.

[DiegoMirnov]

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%?

We’re always reviewing how pricing and fees work at Envato, and will keep this in consideration.

@collis , I hope you really keep this in consideration.

[MbrEffects]

yeah they need to take this in consideration " Increase the item price (15%) to cover the loss? b) increasing author commissions up to 85% and starts from 70% instead of 50%" the only solution besides not moving to us.

[SpaceStockFootage]

I’m British, but I’ve recently moved to Spain. I set up my Paypal account in the UK and I withdraw my earnings to my UK Paypal account. If I fill in my W8 with my country as Spain, does that mean that I can’t withdraw my earnings to my UK Paypal account?

[MbrEffects]

“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.”

[SpaceStockFootage]

Cheers! I don’t really want a Spanish Paypal account and a UK Paypal account. Give it a couple of months and I’ll edit my post to say…

“I’m British, but I’ve recently moved to Spain. Then I moved back again.”

[odiusfly]

2. You don’t have to use the same payment account on Envato Market and Envato Studio, but the new rules will apply to withdrawals from both starting January 1st, 2016, i.e., payment account countries must match the country of residence on the W form, changes to payment account details are limited to one per month, and withdrawals can only be made to a single account per Envato business per month.

Thanks collis for the answers… I don’t understand above.
Ok, we need to have 1 payment account for envato market + studio, cool!

Envato market is every 15 of month, and envato studio is every 7 of month. This method will change?
I mean, something like merge of both earnings? Sorry, but i am little comfused…

Thanks again!

[ThemesCreators]

Do you know how much is the withholding tax rate for Spain?

[MbrEffects]

envato new rules are the reason why you are moving back ?