What is the US Tax for British Company?

Envato Authors Graphics Authors
1

Hello - as we know, Earnings from each project sold to a US client are reduced by the applicable IRS tax.

My question is -> What is the US tax rate when the author is a British company (LTD company registered in UK)? 0%? 5%? 10%? More ?

If someone can give me quick answer… would be great :slight_smile: Peace :slight_smile:

2

UK should be 0% after providing all necessary taxpayer infos
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3

That’s what I was thinking - > 0%. Thank you :slight_smile:

UPDATE - anyway, so if the tax is 0%, will the British company receive any “tax-summary” like the other authors do - for example non us residents who paid for example 10% US tax receive 1042-S form ever year (online). Who knows?

4

Yeah, they still get a summary.

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5

Ok - so british company still gets this summary but with 0% tax.

My info is now complete.

PS. I made the survey today (about community, envato etc. - here on the forum) - and I choose maximum vote as an answer if any case can be solved here by community - and now I see I was right because every case can be solved here - and this is the proof :slight_smile: … and example for every other person -> maybe sometimes it’s better to ask here first before opening new ticket with support (they have tons of tickets).

props for you guys :slight_smile: thanks :slight_smile:

6

@SpaceStockFootage

Hey - I have one more (difficult for me) question.

Envato is responsible for EU VAT, GST (Australian tax) and CA QST (Canadian tax) - which means Envato is Supplier for those taxes.

Are there any other taxes that Envato is supplier for? Or there are only those three and nothing more?

7

As far as I know there are still on this market:

  • Korean VAT
  • Russia VAT

others probably already exist or will come because more and more countries are introducing VAT on digital services for consumers.

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8

okay - thanks :slight_smile: I didn’t know about Russia and Korea - I will investigate this.

9

I remember hearing a lot about US sales tax in the forums, a couple of years back, but not being a US author I can’t really double check. Can’t quite remember what the deal was with that.

1 Like
10

US tax is obvious - when customer from USA is buying an item from you on the market then Envato will automatically take tax for IRS - in some cases this is 0% tax and in other it could be 10% tax.

But thank you for suggestions :slight_smile: