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Oh, sorry! I was under the impression that people were talking about having filled out their form and still having tax deducted for all their sales, not only those from the US. Now it's clear.

So they don't deduct 30% of ALL your sales !!  I think that's why !   

It\' seems impossible but I\'m afraid you are right. They deducted 30% of all my January sales (4) and I have no US sales in my stats. Bandidos.
If it\'s true I\'ll delete my portfolio from FT (like I already did for videos) - not a big lose, anyway I\'ll probably go exclusive at IS in few months.

Right

If you have filled out a W-8BEN form without a ITIN number you will still be taxed 30% on US sales as Fotolia are insisting you need this ITIN number as Fotolia have not yet sent out any letters to those who have requested them that means most non US contributors will be taxed. I did get Fotolia to agree to send out these letters but you know what they are like so everyone is still waiting to see if we do indeed get them in the post.
It is Fotolias policy to take tax off every US sale if you do not have this ITIN number.

 Now as for people reporting that tax has been taken off all sales well that I would think would be Illigal and you should send a strong message to support telling them this MUST STOP (this has not happened to me in fact not had any US sales so far this year)

It makes me think, are Fotolia taking tax off all sales when the contributor has not filled any type of form in at all ? , as I say this has not happened to me as I have a W-8BEN form filled in without an ITIN and validated on Fotolia but I will still have to pay30% tax on US sales.

Fotolia must wake up to this before they lose some very good and promicing artists it such a sad sad situation and need sorting out as soon as poss BY FOTOLIA !

Warren

Warren,

Yes they certainly do. I haven't submitted the W8-BEN (well I did earlier this morning, so it's in the pending queue now). I've had 8 sales since January 1st - none of them are from U.S. buyers according to the new options from the statistics page. Yet all of them include 28% withholdings (why not 30% by the way?).

In fact U.S. sales make up just 13,9% of my all time earnings there, so I'm not even sure if it will be worth the hassle for me to obtain an ITIN, had the withholdings only affected US sales.

I do want to complain, but feel powerless. Seriously. This is a joke.

 
this is entertainment to my sunday breakfast.

but then again, it may not be as ridiculous as it seems. after all, the CEOs came from IS.

Fill in the FT help desk ticket. Describing the fact that the witholding happens on all of your sales. There are probably others doing this, yet the more, the better. I know this may not get you anywhere, yet there is chance. Actually this is bit different than just the other stuff on which their support proved to be unresponsive. This would be clearly illegal and they will know that.

Considering they are withholding taxes, are they are obliged by law at the end of the year to send us a paper copy of our payroll status with a duplicate going to the IRS.  (By regular mail)  In Canada the form is called a T-4 if on payroll, I think a T4A if withholding from independent contractors.  There must be a U.S. name for this form?  It is against the law not to provide a T-4 here and the employer can get in loads of trouble if they neglect to do so.

I've only had 2 xs sales. One for .31 the other for .277.  

Correct based on my personnal situation.  Canadian resident, two sales, non of them from US, they withhold 28% because I can't submit the W8 Form (see previous post).

Let's see of other's situation to understand what is going on...

Claude

can anyone tell my why they want this ITIN? Shutterstock doesn't?

I am not a tax expert...

US residents, citizens and people working for US companies have taxes withheld from their paychecks. This money is then forwarded on to the IRS as part of our income tax procedures. By law you will receive a W2 or 1099 by the end of January for the previous fiscal year. (Jan - Dec) This document will detail how much money has been withheld.

When you file your tax returns, due by April 15th, the IRS will cross check your stated income against what the company says they paid you and will determine if you owe more money or are due a refund. If you make under a certain dollar amount than the IRS will declare you do not owe taxes and will refund the money. Likewise if you can prove that the money should not have been held then you can submit forms to declare that and they will process them.

FT should not be keeping any of this money for themselves. It should be getting sent to the IRS. If they are not sending it then they are in violation of IRS laws.

The short version is that the money that is deducted should be going to the IRS and you will have to contact them to get it back. Monies held starting Jan. 1, 2010 will be applied towards perceived owed US income taxes that will be due April 15, 2011. 

From the latest info on the FT forums, it looks like people who had filled in the tax form without ITIN are subject to 30% witheld on US sales only. People that had not filled in anything are subject to 28% tax on all their sales which some hint is legal and is supposed to stay that way. We will see...