Tax Information for Sales in USA


#1

Hi ! I have a misunderstanding about the taxes applied for sales made in USA. I’ve completed the w-8 form and as far as I know there is a 10% royalty holdings in my case. The problem is that for example last month(april) I sold totally of 160$ in USA (my part) and the tax should have been 16$ but they took me 40$. So, am I missing something here ? Thank you!


#2

US withholding Tax is based on your gross earnings, meaning your share plus the author fee. Maybe this is why you see a discrepancy.


#3

So for an item of 10$ (7$+3$ buyer fee) this means that I pay 0,7$ for the gross and plus an author fee 2,28$ in my case. I get that. But for this month for example , I have 259,76$ In earnings menu while up right on page near my name shows 233,00$. So far I have 66.12$ total sales in US. It is normal to have a difference of 26,76$? It’s author fee included in tax witheld? Then it should be over 26,76$.


#4

The box on the earning page displays your earning after the author fee but before tax is applied.

You say your US sales for the month are $66.12, is that your net or gross earning?


#5

The net earnings. It appears in the earnings tab.