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

Envato Announcements
1585

VAT and RWHT are totally different things.

1586

I’m not saying they are the same thing, I was just pointing out that it’s not only the US Revenue that wants to put their nose in foreign sellers’ affairs. They do it with thre RHWT, the EU and other countries do it with the VAT. Everybody wants to get as much tax as possible, worldwide.

1587

I’m italian and always paid VAT on all my purchases, from 2015 i pay the same VAT even on purchases outside my country. The tax is on me, italian resident, others are expected to collect it but i’m the one who’s paying it. Non EU authors are paying nothing to EU. EU buyers are.

RHWT is collected on sales to US buyers but non US authors will be the ones paying it.

1 Like
1588

A post was merged into an existing topic: A new opportunity for GraphicRiver authors

1598

No worries.

1601

@natman: I think the tax will be apply for item price except support price. You can’t apply tax for support price.

1603

I’d be surprised if that was the case. The tax is based on an author’s earnings, and revenue they get from providing support would still be classed as earnings. However… the tax ‘category’ that Envato are using for withholding tax is the ‘copyright’ one. You’d be hard pushed to arrive at sales from support services being classed under ‘copyright’, so maybe they might be (or should be) classed under a different tax rate.

1605

One more question - about W8 form and matching it with withdrawals. May be i missed something, but Skrill as well as Payoneer, both US companies? So if i use monthly automated withdrawal to Skrill or Payoneer and live outside USA, i am no longer able to use Skrill and Payoneer? Only SWIFT bank transfer? Or i am misunderstood something? Help me please.

1 Like
1606

@natman @collis Hello, as the other authors who requested the cover letter from Envato, I have no news. As @TopStudio and @MusicPremium, I sent an e-mail on thursday morning, GMT+1. We’ve been waiting for more than a week for you to address this problem, a problem that we, authors, raised. As I said in my previous messages, this is time sensitive as the process takes between 7 to 11 weeks to complete. I’m a little ant with a little voice here, but I’m surprised that it takes so much time to provide us with a simple document (see the Amazon way of doing it, straightforward). Immediate consequence is that I have to stop to upload new content to Audiojungle until I get my ITIN from the IRS. If I do continue to upload new content, I’ll be unfairly taxed on US sales, as other authors in my case that may have bigger portfolios and bigger sales. Thanks for your understanding. Matt.

EDIT 11/10/15 : letter received, thanks. Now we hope to make it in time…

3 Likes
1607

Hey,
I just need a little clarification over here, does this mean that none of these tax stuff and income reducing will affect items sold with a Tools licence?

" US RWHT won’t be applied on items sold with a Tools license (such as items in GraphicRiver’s Add-ons category). "

1608

Me too. Can you specify the lists of the categories that are not part of the tax?

1610

For me it’s simple, I’m lost.

I don’t know what to do and don’t have the time to make research for that. I will have to pay 30% from what on what? I don’t know. :neutral_face:

1611

Any news on partner account for NON US authors? You told us that you will update this topic last week! When we can expect answers? I have also send mail to Colins, but without any answer. I think this is really important!

2 Likes
1612

US-Authors:

  • must complete W-9 form
  • without W-9 form = 28% backup withholding tax on income of all worldwide sales

Non-US-Authors:

  • must complete W-8 form
  • if author has a tax id = 0-30% withholding tax on income of US sales only
  • tax rate (0-30%) depends on tax treaty of authors country and the USA
  • no tax treaty = 30% on income of US sales only
  • no tax id = 30% on income of US sales only
  • without W-8 form = author is considered a US author without W-9 form = 28% backup withholding tax on income of all worldwide sales
6 Likes
1613

My country has no tax treaty and 50% and above of my sales are from U.S.
Big damage to me and other authors.

1 Like
1614

Make sure you still fill in a W8 though, so you only get the 30% taken on that 50%.

1615

Hi Space, i was talking about my buyers(50% are from United States)

1616

Yes, but if you don’t fill the W8, you will get taxed 28% on all sales regardless of country. That’s what Space meant.

1617

@natman @collis Can you confirm is 30% tax (for countries without US tax treaty) going to be taken from US earnings amount that we now can see in “earnings” tab in dashboard?

1620

Can’t remember if i posted this already, however

http://pastie.org/pastes/10514334/text?key=hu0zbzwfnwvhlvmuiblqbq

Extracted directly from the Tax Information page on TF.

1 Like