Hi there, I’m new to envato I came here to sell products, my first one came out about a week ago but I have a question about taxes. My product costs 14$ but when someone from the US buys I get only 3.40$ and in other places i get 7$ (after completing my tax information) so I wanted to know is it normal ?! Cuz for my opinion this is too high! BTW I’m an exlusive author.
And while I’m here, how can it be that sells can be reduced! I had 25 sales after 30min I checked again than it was 24! What happend ?
Sorry for my mistakes, english is not my native language.
Many countries in the world have income tax on payments to non-residents, if they make income at a source in that country, so does the USA.
If you sell here to a US customer, the transaction is handled by the US subsidiary of Envato (Envato USA Inc.) and your gross income of such a sale becomes income from dividends/interest/royalties at a US source and is subject to withholding tax.
your gross income of a sale here is the list price minus the buyer fee of the particular category.
buyer fee on VideoHive is 20%.
based on your gross income you have to pay taxes and author fee.
your author fee at present is 37.5%.
your country has no tax treaty with the USA = 30% royalty withholding tax
sale to non-US buyer: $14.00 - 20% = $11.20 gross income $11.20 * 0.375 = $4.20 author fee $11.20 - $4.20 = $7.00 earnings
sale to US buyer: $14.00 - 20% = $11.20 gross income $11.20 * 0.375 = $4.20 author fee $11.20 * 0.30 = $3.36 us royalty withholding tax $11.20 - $4.20 - $3.36 = $3.64 earnings
