Will be subject to a 30% withholding rate on your U.S. sales.

Does this mean that on US sales I will only receive 20% of the sale price as earnings?

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You must fill your tax information ( Setting - Tax information )

That doesn’t answer my question.

This is really right answer.
If you donf fill tax information you will pay 30% withholding tax.
Please read information in you Setting - Tax information menu

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I asked if you would receive only 20% earnings per sale in this case or not. Nothing about how to remedy the problem. Just want to be clear on what it means is all.

It depends on where you live. Basically if your country of residence has no tax treaty with the US, you’ll have 30% withheld from your sales to the US.

If you don’t know whether your country has tax treaty with the US, have a look at this list; if your country of residence is listed there, then you’ll have the corresponding tax rate withheld from your US sales.

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Hmm I read in a thread in the other forums that its on ALL sales, not just US sales. So if your country doesn’t have a treaty with the US then you get 80% taken off ALL sales?

You get 28% withheld from all sales if you don’t fill out a W8 form at all. But if you fill out one, you’ll have 0% withheld from non-US sales, and 0%-30% from US sales depending on where you live AND whether you provide a tax ID number with W8 form.

No. You get 30% taken from the item price, not the list price. The item price is the list price minus the buyer’s fee, and it’s the item price that you see on your statement page, not the list price.

So if a $10 item has a buyers fee of $2, giving an item price of $8… then the tax is calculated on that $8. So 30% of $8 is $2.40… and if you’ve got an authors fee of 37.5%, then you’re paying a $3 author’s fee, so the final amount you’ll get is $2.60 or 26%.

On the bright side… that’s better than 20%!

Fortunately we do not have to fill out a tax declaration for each country in which we sell :scream: (by the way, thanks for the tax treaty list, OsamaSayegh and Sealord).

Does anyone have experience about when we can expect the repayment of the withheld amounts (after the form has been submitted)?

No, you won’t get it back. However, Envato will provide you with a tax summary you can then submit to your own tax administration and you may be able to get a tax credit (depending on your country’s policy).

Thank you for your reply.
Merci de votre réponse :slight_smile:

In the end would that mean that Hasenmusic was right saying (if I may quote) „Does this mean that
on US sales I will only receive 20% of the sale price as earnings?“

So its a new way to get more money for Envato I guess. Like their fee isn’t already astronomical.

No. You don’t get 30% taken from the list price, you get 30% taken from the item price. See explanation above. So the final percentage amount you get depends on what you’re selling, whether it’s subject to ADP (and if so, what you’ve priced it at) and how much you have sold in total.

But this hasn’t begun yet right? Its next year I thought.

You’re not mistaken…

Yeah that’s what I thought but BluePaw was talking about getting the tax back so he had me thinking it had already started.

You’re both right. It hasn’t started yet, but as PurpleFog says… Envato will provide you with a tax summary you can then submit to your own tax administration and you may be able to get a tax credit.

Maybe I am totally wrong, but I thought due to this form you get the tax back. Or at least some of it. But it seems that PurpleFogSound already made experiences about that. At least in France this form only serves to get a tax credit - if at all. And if I conclude SpaceStockFootage’s coment correctly, authors like us face a realistic net income of 26%

First of all, thank you for your explanations. Highly appreciated!

About the issue:
That would be completely useless for me since I already belong to the lowest income category (shame on me, I wish it would be different). It means nothing more than that I get even less for my work. And many authors as well I assume.