Please tell me this is not a bad joke ( Fees and Taxes)

I have just a simple question. Why expanding to the USA if you are selling digital goods that does not requires shipping? Absolutely ridiculous! Is this because Envato wants to pay more taxes?

Time to move on. I see more and more authors are frustrated and are migrate to another places to sell their goods.

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The IRS is earning almost the same than me for every item sale, this is just ridiculous, we all are working for the USA goverment now!.

please Envato stop this nonsense or you are going down sooner or later.

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I’m not a citizen of America, why should I pay us withholding tax. I’m student and not eligible for paying tax yet so I don’t have tax id. This thing eating up a large portion of my revenue. This whole thing is so wrong.

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I’ll sell all of items somewhere else. Not here anymore.

I made 3.64 Dollars out of 14 Dollar item. How cool! I’m ending now, after multiple rejections (which I can take) and now the big fees. There would be no Envato without the authors :stuck_out_tongue:

i think that this thread should be confronted to the very corporate one out there …

some guys there would have their hair creeping on their heads in my opinion lol

Not true. I’m from Serbia, don’t have a valid tax ID, I’m a freelancer and because my country doesn’t have any agreement with the US and Envato took 50% of my sales to Canadian and Chinese buyers on an exclusive content.

You’re confusing taxes with fees. Every exclusive author, starting out, has 50% taken from all sales. Those are Envato fees though, not taxes. If you’d had taxes taken as well, then you’d get less than 50%.

Thanks for getting back to me and letting me know about the fee and taxes. I was not aware of such high fees because at the time of registration I read that exclusive authors get fee between ~12% and ~30%. Can you please tell me if it’s possible to do something to lower the fees to fit into that range? I have a lot of original ideas and I’m willing to spend a lot of time implementing them, but need to know if the earnings can be improved by at least 20%, so that the fee would be around 30%?

The author fee for exclusive authors is between 12.5%-37.5%.
New exclusive authors starts with 37.5%

You had to pay this author fee and possible US Withholding Tax on base of your gross income.
Your gross income is the list price (from the item page) minus the buyer fee (on codecanyon 20%).

example:
list price: $10.00
gross income: $10.00 - 20% = $8.00
US Tax: $8.00 * 0%-30% = X1
author fee: $8.00 * 37.5% = $3.00
net earnings: $8.00 - X1 - $3.00

without US Tax the net earnings in this case are $5.00 which is 50% of the list price.

You can reduce the author fee rate if you sell more items, see this table

Hi. Thanks for providing a detailed explanation. The only part I don’t get is the part related to the buyer fee. If I’m an author, why would I have to pay a buyer fee? I’m not buying my own product, makes no sense to me. And also all my buyers so far were not from US.

The buyer pays the buyers fee, which is calculated based on the list price and than taken by Envato. What’s left is the item price. That’s what taxes and authors fees are calculated on.

But it essentially cones out to 50%. Give or take. All exclusive authors start on 50%, even the ones who sell millions of dollars a year. But if that’s the case, then you’ll be making 70% in a matter of weeks.

Hm. Sealord here mentioned that authors are paying 20% buyer fee on CodeCanyon. Why are authors paying buyer’s fee, makes no sense to me?

And since you guys answered my question, how can I remove my ticket from help system?

Authors aren’t paying the buyers fee. The buyers pay the buyers fee which is over and above the item price. It’s the item price that buyers have an author fee subtracted from.

Like VAT. If something in a shop is $20 and the VAT is 22%, then the total price is $24.20. Even though you’re not getting that $4.20, it doesn’t mean that you’re having to pay the VAT when you sell an item… the buyer pays the VAT. It then goes to the authorities, which in this case is Envato. So you don’t get to keep it.

But still, apart from a few exceptions, you get 50% of the total price which is comparable to most stock sites. Considerably better than some.

You wrote: “But still, apart from a few exceptions, you get 50% of the total price
which is comparable to most stock sites. Considerably better than some.”

And also considerably worse than on many other stock sites.

Well, I don’t know the rates on every site for every type of item… but I do know most of them on video and photography sites, and 50% is pretty generous. There’s one that pays 15%!

By the way, I’ve just seen the disclaimer that you’re adding to the top of the descriptions on your games. You’re more than welcome to add anything you want in your description (as long as it’s not breaking any laws or Envato terms of service, isn’t vulgar, and is truthful), but I don’t think you’re doing yourself any favours having it there.

At best, it’s going to cause confusion. At worst, it’s going to stop people from buying your item… and how many of them will hang around and come back when ADP is implemented?

Where I can fix my “tax id” from my profile envato? please help me thanks :slight_smile:

‘Settings’ and then ‘Tax Information’.

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I already find it, many thanks :slight_smile: regards.