This thread is for questions related to the non-US Author/Affiliate/Service Provider changes we’ve just announced. We’ll be providing batches of answers every few days.
To make sure everyone can follow the discussion and we don’t miss something important, please:
Carefully read Collis’ blog post and all help center articles before jumping in with a new question
Stay on topic and post your question in the relevant thread
From January 1st, 2016, when you sell to a US buyer, we’ll apply US Royalty Withholding Tax (US RWHT) on those sales only. US RWHT rates range from 0% up to 30%…
What does this mean in layman’s terms? There is a possibility to receive 0% to 30% less per sale from US buyers?.. If so what is the process to claim that back?
I have a exclusive and a non-exclusive audio jungle account, both payments go into the same Paypal account. Will I still be getting both separate payments from each account on the 15th of each month?
I saw the announcement said something about this but is was vaguely written.
The tax is calculated from gross earning or net earning?
If from gross earning, then it will be the end for non-exclusive authors who their country doesn’t have tax treaty with US. Because it means they’ll get only ± 6% from their item sales. LOL
And more complicated statement page is on their way… XD
It’s very disturbing that the US tax authorities unilaterally grant themselves the right to interfere in all transactions of its residents, and require information of any kind from non-residents.
What does this mean to non-US authors? I don’t quite understand, and the link to Collis’ post is down. Less earnings for US/Non-US authors, or just more tax to pay for US buyers?
The tax rate depends on the tax treaty your country has with the US. But if you don’t register with the US tax authorities, sales to US buyers will be taxed 28%.
"In absence of a valid Form W-8, the IRS requires us to assume you are a US Person who has not completed a form, meaning all your sales will be subject to Backup Withholding tax of 28%"
Is that all my sales to US, or ALL my sales period?
Edit1: Oh, @InspiringSound answered
Edit2: Knowing that my country doesn’t have any kind of tax treaty with US, that means I will be paying 30% tax?
So it’s better for me to now fill the form and pay 28%?
Edit3: "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."
I guess after all i ll’ have to fill the W-8 or i can’t withdraw money?
Tax tax tax tax. Could somone explain this in simple figures like if you sell items for 1000 USD how much you actually make after US taxes, etc?
At this point I feel that I starting to waste my time creating and selling content here on envato, for each 1000USD sales I only make 381.88USD (after tax) its 60%+ in tax and now the US thing. I’m wondering if its even worth it…
It’s the end of my account, I’m non exclusive author, i only get 33% of each sale and my country don’t have a tax treaty with USA, so Envato will charge me an extra 30% when someone from USA buys 1 of my items. We all know that at least 60-70% of the buyers are from USA.
In the Envato competitors market they have the same rule, but they pay 70% (for exclusive and non exclusive authors) of each sale, when someone in USA buy 1 of my items there i only earn 40% of the sale, imagine now here on Envato if i already only earn 33%. This means that non exclusive authors will earn a 3% of the sale when someone from USA buys one of their products.
Too bad news, Envato why the hell you keep hurting your authors. Your attitude is “We will grow, even if this means hurting our authors”. Don’t even say “this will help our authors” or “we do it for the benefice of the authors” because we are not stupid.
If you say that you listen us, then make a voting. Let us all the authors vote. 100 bucks you don’t do this!
For my country, i see withholding tax rate as 0 (zero) for royalties. What does it mean? 0 percents of withholding from my US sales? Or whole 28% will be withholded from my US sales?
