The reason am asking this question beacuse still we have received market related email from envato with the same address (Envato, PO Box 16122, Collins Street West, Victoria 8007, Australia).
Envato has not moved to the US, they opened a new entity in the US. Envato US deals with US buyers and US sellers. Envato AUS deals with non-US sales.
What The Fog said… Envato isn’t leaving Australia, they’re just opening up in The US of A as well. That’s already happened.
Okay, If Envato AUS deals with non-US sales and non-US buyers, so why backup withholding tax applied from 28% of your total worldwide sales.
US royalty withholding tax at your country’s treaty rate (0-30% on your sales to US buyers only) goes to US.
But backup withholding tax 28% of your total worldwide sales goes to whom(AUS or US)?.
Envato thinks you are a US citizen that has not filled the tax form for US citizens and is withholding 28% for all your sales. You need to fill the tax information for non us citizens on your Envato account [Settings > Tax Information]
Envato thinks you are a US citizen okay but please mention Envato (AUS or US) who thinks am a US citizen?
It’s the IRS that thinks you’re a US citizen… Envato just have to go along with what the IRS think now that they’re in the US. It does just take a couple of minutes to fill in the W8 form though, which satisfies the IRS that you’re not a US citizen.
SSF now i am totally confused
I understand one thing, the total control is now in Envato US hands right?.
Well, when it comes to US withholding taxes, yes. I’m not 100% sure about the whole ‘US deals with US sales, Australia deals with everything else’ suggestion… I’ll have to look into that, but as for the whole withholding thing:
Any non-US author who doesn’t fill in a W8 will have 28% withheld on all their earnings. Any non-US authors who fill out a W8 but don;t include a tax ID number will have 30% withheld on all their US sales and 0% on all their non-US sales. Any non-US authors who fill out a W8 with a valid tax ID will have 0% withheld on all non-US sales and the amount withheld on US sales will be based on the figure in the following chart under royalties… copyrights.
It’s 0% for Germany, just so you know.
If you fill the form > You’ll pay tax for USA sales
If your country has a tax treaty with USA, you may also benefit from a tax reduce.
- If you do NOT fill the form > You’ll pay tax for each sale, which is 28%
u can consider it this way but for u this is not much of an issue