Whether your income is taxable or not depends on your country of residence or business operation. This article serves only as a guide and should not be relied upon as legal or tax advice. It’s best to consult with legal professionals on any concerns you might have on tax laws and income tax filing. While we are committed to helping Vendors, Epitrove is not obligated to determine whether taxes apply to you, and is not responsible to file taxes on your behalf.
For Vendors in the U.S.
If you are a product Vendor or Affiliate whom the Internal Revenue Service (IRS) identifies as a “U.S. Person” you need to pay taxes on your Epitrove earnings.
- You will need to fill the W-9 Form electronically (this is similar to filling out the Form W-9 by the IRS). For this purpose, we would need your Tax Identification Number (TIN) and other details, which can be entered on your Vendor or Affiliate profile page.
- It’s mandatory to provide us this information even if you are a non-profit organization and even if you do not reach the reporting threshold.
- If your products worth $20,000 were sold in more than 200 transactions during a calendar year, we will send you Form 1099-K. This form is not tied to your earnings but to the value of the total sales, your products make (before commissions and refunds). If you’re also an affiliate on Epitrove, your affiliate earnings will be taken into account when this form is sent.
- If you do not submit us a completed Form W-9, or in case the TIN is incorrect, we will be obligated to deduct a backup withholding tax of 24% on all of your product sales.
For Vendors not in the U.S.
If you’re an individual or business that operates from outside the U.S., you will have to fill and submit the W-8BEN-E Tax Form.
Any sales you make to U.S. buyers may be subject to a maximum royalty withholding tax of 30% unless your country of operation has an income tax treaty with the U.S. In such a case, the rate of withholding tax will be reduced.
If you do not fill up the W-8 or W-9 form, we will be compelled to deduct a backup withholding tax of 24% on all of your product sales.
For Vendors in Australia
If you are an individual or business that operates in Australia, we will have to charge a Goods and Services Tax (GST), unless you provide a valid Australian Business Number (ABN) and acknowledge that you're registered for GST.
If not, we will deduct a 10% GST before payments are made to you. GST is calculated on services Epitrove collects when your products are sold and not on the cost of your product.
- By law, GST will be applicable to you even if you do not under the required threshold.
- GST will be calculated in US Dollars
- GST is collected from payments made to you and not from the buyer
Value Added Tax for Vendors
A Value Added Tax (VAT), is a tax Epitrove collects on the services it provides. This tax is collected on Epitrove fees and not the cost of your products on sale.
The percentage of VAT may differ based on your country of residence/operation, which means your tax percentage will depend on your country's VAT rate.
For Vendors in the European Union (EU),
- Epitrove will charge you a VAT unless you specify a valid VAT number. This number can be entered through your profile. The details of the VAT ID (like the country of residence, name) should match the details on your Epitrove Vendor Profile page.
- This will be charged in US Dollars on Epitrove fees and will be collected before payments are made to you
We do not charge Buyers a VAT