US tax charged, I'm Australian

As an Australian company paying an Australian, surely I don’t have to pay US withholding tax? I tried to find a number to call but the number was invalid and it was the only number I could find.

Sales are handled by Envato USA Inc. You can find the details here…

But on my statement it clearly states transactions are based in Melbourne, Australia. My account will be deleted soon so I guess I don’t have to worry about it for long anyway.

Not quite… but almost! It clearly states that ‘Transactions are based in Melbourne, Australia local time’.

Mmmm… doesn’t that still mean they are based in Australia? What would be the point of using “local” time otherwise. Thanks for your reply SSF, my images won’t be sold here much longer anyway. It’s a shame as I was hoping as an Australian company I might sell my Australian images… but not to be. I’ve only had a handful of sales so the awkward and time consuming upload won’t be missed. I guess they’ve done me a favour in ditching me :smiley:

They process transactions in the US but the actual company is Australian and you only pay the US tax when your buyer is from the US and if you have submitted your tax ID to Envaro (in your account) then the tax rate would only be 5%. I guess you may not have done that and it’s hit you for the 30%?

Thanks Gareth, no it’s only the 5%, but it has been taken from the total price of the image, not the amount I am receiving which is what all other agencies do. It actually equates to 11%. I guess how they work it is all above board but it’s definitely over my head.