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Author Topic: Envato Australian Royalty Withholding Tax  (Read 3620 times)

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« on: February 12, 2023, 20:49 »
0
I'm a US resident, and I signed into Envato/Videohive to view my 2022 tax documents and noticed there was a "Australian Royalty Withholding Tax" for July 1, 2021 to June 30, 2022 document. I don't believe this was ever mailed to me, and it doesn't show up anywhere on the 2021 1099 form that I was sent last year.

I was completely unaware a royalty withholding existed, and I essentially completely ignored it when completing my taxes last year.

Was I supposed to complete some kind of US/Australia tax treaty document to account for this? Nothing on my 2021 1099-misc indicated any type of withholding whatsoever. All it showed was the "royalties" box.

It's also odd that it starts in the middle of the year, from mid 2021 to mid 2022. I don't really understand this.

For those in the US who also sell on Envato, how do you handle this on your tax return (Schedule C I assume, that's what I use anyway)?


« Reply #1 on: February 12, 2023, 21:36 »
+1
Its not been enough to bother with.

« Reply #2 on: February 12, 2023, 22:41 »
0
Envato is the worst site regarding tax withheld. I'm from a country that doesn't have a tax treaty with US, so 30% tax should be deducted from my US sales.

If I sell a clip for 100$ on SS, and I'm on level 4, I'll get 30%=30$. If the sale is for a US client, another 30% is deducted from my share and I'm left with 21$. The same happens with Adobe Stock.

If I sell a clip for 100$ on Envato, they will deduct 3$, then I got 50% of the rest = 48.5$. If the sale is for a US client, they will deduct 30% of the whole sale, in this case 30$, from my share, and I will be left with:
48.5$ - 30$ = 18.5$ (!)


 

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