until yesterday all my sales to USA were without withoulding tax because I’m from Italy and i thought the treaty was to 0% Royalty Withholding Tax.
now i see a US Royalty Withholding Tax suddenly appear.
when the rules have changed???
It has always been 5% tax for italians, but apparently Envato made a mistake and we never paid even when we were supposed to…!
So yeah, 5% on US sales from now on =)
Good to know! honestly, it seems like a joke…
now will envato claim the money back!?
Some of us received an email informing about that, I didn’t…
No way we will pay for their mistakes, otherwise we would have already paid…I hope!
neither I have received any email…
For me it started on october the 19th and from the second payment, not even the first Us customer…anyway very bad to get a 5% less of an already high taxation…
the best part of all this is that i have never seen or read an official envato statement… :-/
Hey @bosone thanks for the thread. We sent out an email last month about this to all authors that we had in our system. I apologize that you and @Rickyloca weren’t included in that group. Here’s the copy of that email for you and any others who might have also missed the email.
"This is an email to let you know about an error in the calculation of US royalty withholding tax for Italian authors.
As you’ll likely be aware, Envato applies a 0% royalty withholding tax on sales from Italian authors to US customers. Unfortunately, we’ve recently learned that this is incorrect.
According to the tax treaty that Italy has with the US, the royalty withholding tax rate for items sold through Envato should be 5%. The 0% royalty withholding tax rate does not apply to the digital assets on Envato Market.
We will not attempt to recoup the cost from authors and we will pay the appropriate taxes to the IRS at our own cost.
However, we do need to ensure that the situation is rectified moving forward. As a result, we need to inform you that from 19 October 2017 the royalty withholding tax for Italian authors selling to US customers will increase to 5%. This means that your earnings from US buyers will be subject to 5% royalty withholding tax from this date.
You may be able to claim credits for the US royalty withholding tax paid against your tax liability in Italy. A statement showing your US earnings and taxes paid during the period January to December will be issued to you mid-March every year.
We apologize for all inconvenience caused as a result of this error, if you have any questions at all about the error or the change you can reach us at email@example.com."
Again, my apologies that you didn’t receive the email the first time.