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

As you wish my friend, no problem :smile:

Hi, does somebody know if the address details from the W8 form will be displayed on the invoices?

Hi, Did you find any answer man… I have the same issue… partnership firm in India… don’t get any reply from taxinfo@envato.com

Yes, It does now. :cold_sweat:

Due to the recent tax policy for US/Non-US author I had bunch of questions to be answered but most of the CPA charge decent amount for consultation. Luckily I found a guy on fiverr and used his service once, he will answer up to 3 questions for $5 :slight_smile: here’s his gig if some needs help. https://www.fiverr.com/s2/ef37526f7c

Note: If you have a personal accountant then you might just go with them but many people can’t afford that so this is a cheaper alternative. After all it’s just $5 to try :wink: plus you can first contact the guy with your questions and he will let you know whether he will be able to answer or not.

I am sure that someone else has already replied to that question, but I cannot read 1600 comments :slightly_smiling:
Is tax-treaty from 1 to 30% applied to the sale (43$ item) or to the “after-fee” revenue (cut of 50% = 21,5$)?

Thanks guys

0%-30% is applied on the item price, the item price is list price minus the buyer fee. Or in other words, it’s applied on 80% of the price you see on the item page if the item is not on Graphicriver.

If the sale of a $43 item is to a US buyer and the author is exclusive and has sold less than $3,750, and his country doesn’t have tax treaty with the USA (30%), here is how you calculate the net earnings:

  1. Take 20% of the list price as a buyer fee $43 * 80% = $34.4. (this is the item price)
  2. Apply US RWHT on the item price $34.4 * %30 = $10.32 to the IRS.
  3. 37.5% of the item price $34.4 * 37.5% = $12.9 as author fee to Envato.
  4. Give the IRS and Envato their shares from the item price $34.4 - ($10.32 + $12.9) = $11.18 your net earnings.
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That would be in violation of the terms and conditions of being an exclusive author, and would probably result in getting your account shut down.

That would get your account terminated. Plus it would be illegal to sell to European buyers. And VAT has nothing to do with the recent US move, which this thread is about.

I am very upset after I sold an item by 11$ and earned only $3.03, this means that I just waste my time on Envato.

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Just enter your valid foreign tax ID number in the W8 form, and you won’t be withheld anything.

@collis: I think Envato get hold 30% base on my earning item from US buyer but they hold 30% of item price that’s not good for author.

Example: my item price is $59, our rate is 70%. I get $41.03 so you hold 30% of 41.03 but we wrong, you hold ~ 30% of 59. That’s not fair for author.

Why Europe (UK, France,…) buyer they have pay for VAT tax is ~ 20 but US buyer they don’t have to pay tax, you apply tax for author.

We spend more time to develop item but we get only 32% :cry: :cry: :cry: :cry: :cry:

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Hello everyone!

I have question to staff that answers will be interested for everyone. We all see changes in US withhold in our account. But where is changes in Withdrawal UI part? As we all know now we can make one withdrawal per month to payment account in the same country as we submitted in tax form. Where is this changes? I see the same UI for withdrawal page like before (looks like I can still made multiple withdrawals as before).

Also I remember official reply that we can send money to our partners (to another payment account) to the same country as our or to another country (if we will submit additional tax form for partner). How to do this? How to withdraw money to another partner payment account? Where is new UI for this?

@collis

Hello there ,

I need to know that why invoice total is less than item price and I got to know after calculating that we don’t have to pay tax just from our earnings/commissions its actually that we have to pay tax from the invoice total . So its not just 15% for me its about 23% if I just calculate the deducted taxes from my earnings .

Just an exclusive author reporting on how things are at the moment.
I sell something for 19 dollars, i only get 5.
Not only is this unjust, but also senseless.

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Is there any benefit for us authors from the move to the US? It was not our choice to move Envato to the US - why do we have to pay the taxes?

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You can still have split withdrawals : Changes to Split Withdrawals from January 1st 2016

I would highly appreciate it if envato could implement an additional window in the earnings or statement page which indicates the percentage of the witholding tax that is applied to either all or just us sales. I just resubmitted the W8 form on my exclusive and non exclusive account yesterday since I wasn’t able to take a look at the already submitted forms. Since America has a 0% tax treaty with my country I hopefully won’t see any significant changes.

1 Like

I successfully filled my tax form and still they take some % from my earnings? Is that OK? Suppose to be like that?
I do pay taxes in my country.

Does your country have a tax treaty with the US? Did you provide a valid TIN with your W8?