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W8BEN-I is complete but still subject to 30% tax

A topic by Free Game Assets (GUI, Sprite, Tilesets) created Jun 22, 2022 Views: 2,672 Replies: 44
Viewing posts 1 to 7

Guys, when will the problem with the collection of a tax of 30% from users from Russia be solved?

W8BEN-I is full but still subject to 30% tax. Although Russia and the United States signed an agreement on the avoidance of double taxation.

And why is your support ignoring our requests?

Pinned ReplyAdmin(+2)

Our support team is not ignoring your requests. We have replied to multiple of your tickets.

As we’ve previously explained: 30% is the default withholding rate if the system is not able to match your information to a tax treaty. The information you have provided is not eligible for a reduced withholding rate.

Just because you completed a W8BEN-I does not mean you are eligible for no tax withholding, it depends on the information you have provided on the form.

Hope that helps

I have provided complete information. Which I provide to absolutely all sites. And never had a tax problem. Since the country of which I am a resident has an agreement with the United States for the avoidance of double taxation.

What information are you missing, complete the form submission? Now I have to pay tax twice! First in your system, then in Russia.

Admin (3 edits) (+1)

I reviewed your account and see that you did not provide a tax number when completing the tax interview. It is clearly written on our page where we onboard you for tax collection:

In order to be eligible for a reduced rate you must provide a tax identification number during the tax interview and live in a country that as a tax treaty with the United States.

Hopefully that answers your question

Hello. I've updated the form, can you check if it's correct?

65 days!

I haven't received a payout for 15 days now. What is the maximum term?

Admin(+1)

Typical payout time is 10-12 days after opening the request.

Please use our support system to discuss private account details. We do not discuss account specific details on our public message board. Thanks

Hello, I wrote to support and 5 days no news. The payment has not been paid for 20 days.

At the beginning of last week, support told me that they were checking my tax form and they would definitely check it by the end of the week. Payment #78488 was never sent. It's been 26 days since I ordered it.

(+1)

Hi, how long does it take to get paid?

Hello. How long will you pay my transactions?

(3 edits)

Interesting! My oldest payout is also 49 days. And I’m also waiting on reply from third-party tax support service via itch.

I emailed itch support to see if there was Plan B, but there has been no reply.

So I didn't get an answer.

My situation was resolved after 50 days, my payouts arrived shortly after the email saying things were resolved.

I had no part in the solution, no further information was needed from me, everything was itch-side.

No information has been given so far as to the nature or whereabouts of the problem.

Good luck everybody!

52 days and my problem is not solved.

Moderator moved this topic to Questions & Support
(2 edits) (+1)

I’m also getting this, as a United Kingdom resident.

I'm facing the same issue for me, it's been like 41 days. While my Patreon was updated really quickly

(3 edits)

Mine has been like this since …2018!

For four years I wasn’t selling much at all, so I just used PayPal since they only take 25% rather than 30%.

But since April 2022 I’ve begun to sell many games so I really need to sort this out. I’m losing a lot of money.

I sent an email to support with screenshots. I’ve had confirmation that the issue has been received and reviewed, but so far there’s been no reply or resolution.

I just checked my profile again and my problem seems to be fixed. Apparently itch.io doesn't update the tax withhold rate in the tax rate setting itself but rather when you click the payout button it show that 15% tax has been deducted (which is still high for me)

I feel like your problem might be different than mine. Click on the pay now button. You might see the updated tax info too.

Admin

If it’s like this since 2018 then then tax information you have provided is incomplete. 30% is the default withholding rate if the system is not able to match your information to a tax treaty.

You will need to retake the tax interview if you want to be eligible for a reduced withholding rate.

(12 edits)

It’s been like this since 2018 because I competed the form correctly (it confirmed 0% withholding matched to USA/GB tax treaty) but the itch page still said 30% so I didn’t see any reason to start using itch payments.

Retaking the tax interview twice this week changed nothing, not even the date of the tax interview (still says 2018).

I’ve now been told by support that I should start using it regardless of the 30% warning, and upon my first pay out it will show 0% …somewhere.

I hope you can see what a poor user experience this is?

0% treaty

0% treaty

30% how?

(1 edit)

No further changes made by me, but now I see 0% withholding rate on my tax information page. Hurrah!

Thanks to the itch tax elves for sorting this out. May we all prosper.

(1 edit)

I congratulate you) you are lucky)

Deleted 1 year ago
(4 edits)

You may be correct. I need to wait a week for my first pay out to be available.

Itch got back to me saying the same thing, I think.

Hello

Thanks for reaching out. We recently made a change which defers the tax validation process which may detect the final withholding rate.

You final withholding rate will be available by the time you are requesting a payout.

If the issue persists and you need to retake the tax interview, you can do so through the following link:

Removed link

Thank you, let us know if you need further assistance.

Admin (1 edit) (+1)

Hey, just want to note that I removed the link you shared. We don’t want that link to be public as we adjust our process around how we do tax interview retakes depending on the user.

(1 edit)

No worries, I didn’t realise it wasn’t a public link as it is the same as a link that is on my tax information page.

(1 edit)

An update…

  • 20 days ago my tax withholding was set to 0%. Great!
  • 7 days wait and then I could clicked on some payouts.
  • 12 days wait and I received an email today to say that “Our system has been unable to verify your tax information” but because of privacy laws with the third party provider they cannot tell me why this might be.
  • I redid the tax interview as suggested in the email and the tax interview showed 0% (same as the images shared above)
  • …but my itch tax page has now reverted to displaying tax withholding rate of 30%.

What is going on here? I have replied by email to itch support.

I cannot remember the last time I encountered such an arcane system. It blows my mind that you are recommending this process over a simple PayPal/Stripe payment.

Still, you have ~$$$s of my money so I have to see this through!

(+1)

both myself and itch have contacted the tax interview third party to find out why the interview that has no problems online is later flagged as not verified. That company stated 5 working days response time, but warned about it being longer due to COVID. Currently it’s 9 working days (13 real days) with no signs of life.

If I had to guess I would say this problem affects everybody outside of USA, but not everybody affected is bothered by it (they are happy to give a portion of their money away when they shouldn’t have to). I may be wrong about this.

(1 edit)

I'm at 10 real days so that's probably why I'm still at 30%. I'll wait until they fix it before I put any games up, other than the one in the jam.

(9 edits)

You misunderstand.

My 9 real days is for a complaint to the tax identity interview provider.

My oldest payout is currently at 26 days.

The complaint process was started when my payout was 12 days, and escalated with the tax interview company the following day.

Hundreds of dollars of my earnings from the period during which I used itch payouts are in limbo due to this issue.

Since this came to light, I’ve stopped using itch payouts and am being paid direct through PayPal (immediately) and Stripe (7 days wait, but automatic) so at least I can pay my rent.

Oh, that's for the complaint? 

Things are at pending verification now, so I guess we'll see what happens when I try to payout.

I have the same thing - 0% on the tax form, 30% on my payouts page. It's not an issue yet as I don't have anything to payout, I assumed there'd be a delay between filling in the tax interview and validation but is this a wider problem?

(+2)

Can't say how wide. But you better take care of it now. Since the problems here are solved slowly.

I raised a support request, yet to hear anything back except an acknowledgement.

(+1)

Yes, it’s a wider problem. Only itch knows the details.

Validation is only requested when you start your first itch payout. But, it’s likely to fail for unknown reasons (see rest of this thread). Good luck.

I would advise using PayPal/Stripe payouts.

Direct comes with its own problems - I'm in the UK, so would have to deal with VATMOSS.

(2 edits)

Me too. But at least you’d have the money rather than itch sitting on it.

(+1)

The tiny amounts I expect to make aren't worth the extra hassle of dealing with VATMOSS. If it comes to it I'll switch to exclusive on DriveThruRPG and not bother with Itch at all. I get to test in 6 days or so when the current money reaches 7 days, so we'll see what happens then. :)

(+1)

Please do let me know!

ps: VATMOSS ended July 2021.

Not according to the HMRC website:

VAT accounting options for UK businesses supplying digital services to consumers in the EU

The place of supply will be where the consumer is located. You must either:

  • register for the Non-Union VAT MOSS scheme in an EU member state
  • register for VAT in each EU member state where you supply digital services to consumers

Ah! So it still exists outside of UK but not in UK. Indeed that is messy.

Yep. Not part of it, still have to pay it. Very messy, hence why I never do direct payments!

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