Envato’s cut from each sale is separated into two parts, the first one is called the buyer fee, and the other one is called the author fee. The buyer fee is 20% of the list price. So if you take away 20% from $22, you’ll end up with $17.60. The author fee is 37.5%-12.5% (depends on the total value of your item sales) of the amount left after taking away the 20%. Say you’re new exclusive author, your net earnings would be $17.60 minus 37.5% and that’s $11 (ignoring taxes).
As for US taxes, I can see you have the UK flag on your profile. That’s good news for you as you can be completely exempted from the US taxes by submitting a W8 form with a tax ID number. Just for the sake of not making this post too long, I’m gonna share this link with you:
Make sure you read the bottom part of it as there is some information for the British people concerning what number they need to put as tax ID number.
Thanks for trying to help. However, this confuses me even more. I am not with GraphicRiver, so this example doesn’t help me, and the information you posted here is the same as i can read on Envato’s page on Tax info.
What i specifically want to know is an answer specific to my case:
on Videohive, What i really can’t understand is, How does the $22 become $17.60 ?
There is buyers fee for Videohive sales as well. The difference is that the buyer fee is fixed amount for Graphicriver items, whereas the buyer fee is 20% of the list price for Videohive items.
The $22 is called the list price and it includes the buyer fee (20%) and the item price (80%). Envato takes the buyer fee, and takes the author fee percentage from the item price.
Oops, so many replies poped-out while I was typing