Withholding Taxes with Envato Elements and Envato Market

Summary: This article outlines the differences between tax withheld when selling content across Envato Market and Envato Elements.There may be differences in the amount of tax that is withheld when you are selling content across both Envato Market and Envato Elements.

With Envato Market, you are selling directly to the customer. When you sell to a buyer based in a country with royalty withholding taxes, they will apply.

For example, when you sell to a US buyer, the US royalty withholding tax applies. From 1 September 2022, when you sell to an Australian buyer, the AU royalty withholding tax will apply.

The withheld tax will appear on their AU RWT summaries on June 30, and most authors can claim this as a tax credit through their home country.

With Envato Elements, you are selling your items to Envato, an Australian company. Therefore the Australian royalty withholding tax applies. If your country does not have a tax treaty with Australia, the royalty withholding tax is 30%.

Depending on the tax law within your country, you may be able to claim credits for the taxes paid in the US and Australia.

'Do I need to complete another tax form?'

This is a common question that we hear regarding the taxation on Elements, and the answer is no. The forms that you have submitted for Envato Market are valid for Envato Elements.

If your country does not appear in Table 1 (below) then it does not have a tax treaty with Australia and the default withholding tax (WHT) of 30% is applicable.

Table 1. Australian Income Tax Treaties