Why envato is cutting 70% even with exclusivity of the item

Hi, I just published an item.

Item price is : $29.

got 2 sales, the total balance should be $31.24 after the fees, but surprisingly I only have $16.24, which is half what’s expected.

envato took an additional $7.5 per each order as US Royalty Withholding Tax, why I’m I paying the customer’s fee, and taxes? I agreed to the fee which clearly states $4, but I wasn’t aware of the taxes, there is almost no profit with this huge cut, can someone explain why this is happening and how can we change this.

These are not the customers taxes, they’re your income taxes for the US. You need to fill the W8 form with a valid Tax ID so that your non-US sales are not taxed at all and your US sales are taxed according to your country’s tax treaty with the US rate.

Learn more on that:

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I understand, but this doesn’t justify the huge cut from author earnings, eventually I’ll get 30% from sales to US customers, basically all my customers, meaning I’ll get $6 per order, $6 doesn’t even cover for the time spend on communication with clients. I’ll probably be withdrawing my item from envato soon.

Morocco has a 10% tax treaty with the US. So you if list price is $29 then item price is $23,2. Your author fee is starting at 37,5% so your earning is $14,5 for your non-US sales. For your US sales, you have to pay taxes on your gross income so at 10% your left with $12,18

EDIT: I realize you’re on CodeCanyon and probably fall under the self-pricing category with a fixed buyer’s fee. Then, my calculations are wrong. If so, you will have to set the price according to what seems fair to you.

Yes, but why is it taking 30% I already selected Morocco in Tax Information and I’m left with $7.5 instead of $12.18 per order.

Did you provide a valid Tax ID? You need to fill the “FTIN” field of the W8 form with a valid Moroccan Tax ID in order for the treaty to be applied.

No, I don’t have a tax ID, I’m individual, not a business, and I don’t have a tax ID here in Morocco.

No need to be a business, it can be your personal Tax ID. If you don’t have any, then unfortunately the treaty benefits won’t be applied.

That’s too bad, not sure what to do now.

Grow up and understand that businesses have expensives and you cant earn, without been legal and pay what you have to pay.

What do you mean by grow up? Slow it down, I’m not working for you or for envato or anyone. A business have to pay their taxes not force the authors to pay for them. What a business modal would pay 70% of profit would you call a business.

You just said you are " not a business " but an individual.
That said, you have yo pay your taxes as a business and as you are not a business, someone else has to pay for you.

Yes, you are working for Envato, when u are not a business, because they are the business who sell for you ( an individual ) and they pay your taxes as you cant as individual.

People who are residents for tax purposes in Morocco, are liable for tax on all their worldwide income (businesses or not)… so you should have a tax ID number. If you haven’t, then I’m sure the local tax office would be happy to allocate you one.

This is utterly inaccurate.