No. The withholding percentage is taken from the item price, not from your earnings. The item price is the list price, minus the buyer fee. The buyer fee is 20% of the list price.
So if you have a $10 item, the item price is $8. Whatever percentage you have withheld is calculated on that $8. So if it’s 30%, then it will be $2.40.
If you’re getting 50% from the total list price (or whatever the equation is these days for the amount you get paid), then the $2.40 will be taken from your $5 leaving you a grand total of $2.60. So you’re not getting 30% taken from your earnings, you’re getting 48% taken from your earnings.
That’s if you fill out the W8. If you don’t fill out the W8, then it’s 28% on all sales, not just the US ones.
I don’t think you can get much clearer than that. Unless the person writing the announcement was mistaken, then items with a tools license (such as items in GraphicRiver’s Add-ons category) won’t be subjected to withholding.
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!
@collis@natman Hi Guys, This is now the end of second week, You promised 14 days ago to revert on partnership question of @Dream_Theme by mid of last week (passed already). A response is appreciated before you close for this week.
@Dream_Theme Do you have any news? Collis and team must have had discussions with you? How you are going to do this in 2016?
Thank you for your patience, we have an internal option that we’ve been circulating and getting feedback on. I’m sorry it’s taking a while, it’s important that we come back to the community with something both clear and well considered - which in turn takes more time than a quick solution.
I’m optimistic that we’ll have a proper update late next week!
Step 2: Copy of a valid passport with your photo to authenticate (50 € per ID authenticated) at an American embassy in France, a consulate or the courts who have the competence to certify documents.
Step 3: Mail the form and documents plus Envato’s letter (which I’m still waiting) at:
IRS Austin Service Center ITIN Operation
P.O. Box 149 342 Austin,
TX 78714-9342 United States of America
Step 4: Wait for their response and fill up our W-8 in settings> Tax Information
Additional questions :
What will happen if I don’t have provide you the w-8 form before the 1st January 2016, I will be punish for the rest of my life or just the time before to have send you everything?
Thanks for the update @collis. No problem if we have progress update. People get worried if we see no talk on the hottest topic. This seems ignored. Thanks again for taking your time to update community. We appreciate.
We are non-US Authors. We would appreciate if you could enlighten us in the following questions:
In case we have not completed the process of the new formation of our company (bureaucracy-wise) before the 31/12/2015, we would like to know if we shall face any problems submitting the W8 form out of time. Of course, we are speaking about any side-effect, apart from the 28% of the Backup Withholding Tax, from 1/1/2016 till the submission of the W8 form.
Is there the possibility to be able to re-submit/re-edit the W8 form in case we change the formation of our company during our course? Are we able to change our status any time is needed?
We own 2 Envato accounts. Should we fill 2 different W8 forms with the same details? What would be the legit process?
I’m sorry if the question is not when teme.tell if someone knows,when best withdrawal to cash in November or December? if I’ll get the money at the end of December 2015 and received in January 2016, whether they will be levied a new tax?
It’s not difficult if you know English and can use google to find examples of how to fill out the forms.
Been using the W8 form for years now on TurboSquid, and got ITIN number this year as well.
Still, a dumb move by Envato. Why “expand” to US if this just hurts your sellers? It’s an online business, you don’t need an office in specific country to sell there.
A couple notes as I did this twice this year to my ITIN:
It’s best to send your original passport (it even says so in the W7 form instructions) as not every certified copy will be seen as authentic in USA. So basically two choices: send original or get a certified copy made by your local embassy (most likely the first option will be cheaper even if your passport gets lost at some point).
Envato letter as of 2015 must be hand singed, not just a print out copy of a generated letter from the website. My first W7 form was rejected because I have included the downloaded and then printed out letter from TurboSquid instead of the genuine hand written copy (had to request one from them after my form was rejected).
The whole process takes 6-8 weeks, so it will be impossible for people to the ITIN number in order to use the tax treaty benefits of lower tax rate.
I know that these W# forms are requested by American IRS…but why now? Are they requested only to companies having headquarters in USA?? If Envato would move, let’s say…to Canada, Envato would have to request these forms from us too ?
Hi, Can I transfer the ownership of my Envato Account (registered in Serbia) to my brother from Germany and let him handle the finances while I focus on design and creativity? How?
Also, very disappointing move Envato! You already withheld too much, this is such a greedy capitalist move from a creativity funded company such as yourself. You’re crushing so many creative souls for more bucks, and you’re entering the US politics game by banning the authors completely from the list of countries of the US’s choosing. I’m not sure why you’re taking “tax BACKUP”, this just means YOU are keeping our money for the whole year before doing anything. No other US based company does this, this includes Upwork, eBay and more. I was never charged for 30% of my royalties. You are KILLING us authors.