Want to have a more clear picture on the fees that are applied


#1

Hey guys,

Sorry if I’m posting this in a wrong section but I couldn’t find a section for this one. I had my first sale last night. I’m happy about it. But I’m also a little confused about the fees. I was asked to set a price for my item and the break down was shown 3$ + 1$ = 4$. I want to know what is buyer fee and what is author fee. My item price is 4$ and I got 1.03$ for the sale. I’m not ab;e to understand the calculations. I also checked the article about the breakdown of the fees. 20$ buyer fee + 20$ author fee + 60$ your share = 100$ item. So, I calculated with this in mind and it means 40% is the fee. So my calculation goes like this 0.8$ + 0.8$ + 2.4$ = 4$. I may be wrong and that’s why this question and topic. Your help is much appreciated.

Thanks


#2

The buyer fee for Graphicriver items is a fixed amount based on the category of your item. It’s specified on the upload page when you submit your item. So for your item, the buyer fee is $1. Envato takes that along with the author fee.

The author fee is a percentage of the amount that you specified on the upload page i.e. the item price. For this particular case, the item price is the $3. For now, Envato charges you 37.5% of the item price as author fee. 37.5% of $3 is $1.12.

Taking away the author fee from the item price leaves you with your net earnings, $3 - $1.12 = $1.88.

It seems like you haven’t filled out a W8 form yet, thus had to pay 28% of the item price as taxes. If you go to your account settings >> tax information, and fill out the form over there with a tax ID number, you’ll pay no taxes on non-US sales, but you’ll still pay 15% of the item price on sales to US buyers.


#3

Thank you @OsamaSayegh for the detailed information. I went through the statements and found out the breakdown of the fees and taxes. I was charged fees of 1.13$ and a tax of 0.84$. Now that I’ve fill out the tax information will I get the taxes fees back?


#4

No. But if I’m not mistaken, you’ll get at the end the financial year a document showing how much taxes you’ve paid and you can show that to your local tax authorities to get a reduction on your local taxes. Something like that, I’m not sure. Better ask an accountant or local tax consultant in your country.


#5

I mean I’m a non-us resident and since the buyer is from the US the tax should be 15% right? That’s why I was asking if I’ll get it back.


#6

Not sure I got what you mean, but the tax will be 15% on US sales only starting from the point when you fill out a W8 form and provide a tax ID number with the form. Without the form it’s 28% on all sales, and with the form but without a tax ID number it’s 30% on US sales only.


#7

Ok I got it what you said but envato should highlight the tax information link so that new authors don’t loose extra tax fees if he/she is Non-US.