Launching Envato USA Inc

Hi everyone,

Following on from Collis' October 2015 announcement, we've just released the final changes to make our American company (Envato USA Inc) live and ensure we are complying with US federal tax requirements. These include:

• All Envato Market US users will now pay, and be paid by, our US company.

• Swift fees have decreased from US$35 per transaction to US$25 per transaction.

• US Royalty Withholding Tax (US RWHT) will be applied on all sales by non-US authors to US buyers. There are a few exceptions to this rule - see "When will Envato not apply US RWHT?" in Collis' post.

• US Backup Withholding Tax (US BWT) will be withheld at the rate of 28% of total worldwide sales and remitted to the US Internal Revenue Service (IRS) for all authors, service providers and affiliates who have not submitted a W form (W-9, W-8 or W-8Ben).

• US RWHT and US BWT will be reflected in corresponding transaction lines on the Statement page.

• All revenue for the 2016 calendar year will be reported as required by the IRS in 1099 and 1042 forms.

Full details, including how US taxes are calculated, instructions for how to complete a W form and more, can be found in the following posts and help center articles:

• We're Expanding to America. Important Tax and Withdrawal Changes for All Authors and Affiliates

• Tax Information & Form W-9 Requirements for US Authors

• Tax Information & Form W-8 Requirements for non-US Authors

• Changes To How We Collect Billing Details

We also have a special email address (taxinfo@envato.com) you can write to where we'll provide as much help as we can. Of course, this has the caveat that you should always seek advice from a professional accountant / tax advisor because we can't advise about your specific tax situation.

Cheers,
Adam

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