Weird sale earning value

Hey, i´m a starter in this industry so i do not know somethings like taxes and that stuff but…
For example, i have sold an item for 8 $ it says that i received 2.88$ and then my earnings were 1.09$

How so? could someone enlighten me?

Thanks in advance

$2.88 is your earnings, and the $1.79 is US withholding tax… leaving you with $1.09. You’ll see the details if you go to your statement page. Check out the article here which should clarify a few things…

Bottom line… US withholding tax is withheld on all sales at 28%, until you fill out a W8 form in your account settings. Then you’ll only have 0% withheld on non-US sales, and depending on where you live and whether you provide your foreign tax ID on the W8 from, you’ll have somewhere between 0 and 30% withheld on all US sales.

  • you sold that item on 3DOcean before Author-Driven Pricing was active = 20% buyer fee
  • you are non-exclusive = 55% author fee
  • Envato has no taxpayer information about you = 28% backup tax on all worldwide sales
  • you have to pay the US withholding tax and the author fee on base of your gross income
  • gross income = list price - buyer fee

$8.00 * 0.20 = $1.60 (buyer fee)
$8.00 - $1.60 = $6.40 (your gross income)
$6.40 * 0.28 = $1.79 (us backup tax)
$6.40 * 0.55 = $3.52 (author fee)
$6.40 - $1.79 - $3.52 = $1.09 (earnings)

Thanks, now how i understand how this works.

Okay, humm but what if im not an US user?

The advice above is for people who aren’t US users. If you were from the US, then the advice/info would be different.

Oh humm, so would it be possible to get some more explanation about this issue? This is kinda hard to understand for people who are starting:S

Pretty much everything you need to know is in the link above, but if you have any specific questions you need clarified, feel free to post them here.

Will do, thank you :smile:

For example, it says only if the buyer is an US person, that i will have a cut of % from tax. But in this example, the person that bought my item is from united kingdom.

Am i reading wrong?

Envato has no taxpayer information about you (you don’t submited the W-8 form)
Without this taxpayer infos, Envato must treat you as an US-Author without any tax infos = 28% US Backup Tax on all your sales no matter of the nationality of the buyer.

I see you are from Portugal and Portugal has a double tax treaty with the USA of 10%.
Your options:

  • fill out W-8 form without foreign tax ID = 30% tax on US sales only
  • fill out W-8 form with your Portuguese Tax ID as foreign tax ID = 10% tax on US sales only
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Okay, so this w-8 form only needs my tax ID nothing more?

Your tax ID along with some basic information about you. Go to your profile settings => Tax Information section, and there should be an online copy of the form you need to fill out.

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I don’t know about this issue, I need to have a special logo made but they can’t guide me, that is, I have it in flat jpg and I want to get it in 3D