Tax Doesn't have to be taxing ?!?!?!

#1

Hey there guys,

Creativity is my bag. Numbers, ain’t so much :frowning:

So do forgive, but i’m a lil confused. Can someone explain how on a sale of item $22, i make only $6 ?

For example, my item ‘Stars of CCTV’ is listed at $22. A buyer buys it, and it becomes $17.60 ?? how ???

Then out of that $17.60, there’s US witholding tax of $5.28 - making $12.32

And finally, out of that $12.32, Envato rightly takes its cut …(in my case, 54%) - so that’s $5.72 to Collis and co.

Which leaves me with $6.40.

What i really can’t understand is, How does the $22 become $17.60 ?

Am i missing something here?

thanks

Inoxide

#2

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.

1 Like
#3

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 ?

Can anyone answer this simply?

Thanks.

#4

Buyer Fee on Videohive is 20% of purchase price.
$22 * 20% = $4.40
$22 - $4.40 = $17.60

#5

ITEM PRICE IS 17.60$
PRICE ON PAGE IS 22$ = ITEM PRICE + BUYER FEE.

go to page of your item and find this:

Use, by you or one client, in a single end product which end users are not charged for. The total price includes the item price and a buyer fee.

#6

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 :grinning:

#7

Perfect! Thanks Sealord and St_Denis, and also Osama.

Sometimes simple answer is best.

I did not realise Envato takes the Buyer Fee AND the Author Fee as well !

Also, if i buy a item for $22, it charges me $26 as well !!! very confusing. (it seems like some double-taxing going on).

#8

That’s VAT. The withholding tax is income tax.