Author Topic: What's up with the withholding rate on ALL video sales, and not all image sales (Read 7884 times)

spike · « **on:** February 05, 2018, 12:37 »

I live in a non-treaty country and EVERY video sale has an $14.15 amount withheld. I thought that's just the way it works, despite the fact that all other agencies apply the withholding tax only if the buyer is from the US.

Then I go and check my images sales earnings on the same agency (storyblocks) and some images have tax withheld from them ($1.15), but some have $0.00 (aka no withholding tax applied)!

What is up with that? I would have understood if they applied the withholding tax to all sales (which they don't because they haven't applied to some of my image sales) or if they just applied to US sales (which they don't, as otherwise some video sales wouldn't have $14.15 withholding tax associated with them).

I don't want to throw accusations which are unsubstantiated, but this seems like they might be tricking contributors and keeping the withholding tax amount even though they shouldn't, as they should just keep if for the US-based sales.

Anyone know what's up?

increasingdifficulty · « **Reply #1 on:** February 05, 2018, 13:27 »

How do you know that not all your video sales are US sales?

spike · « **Reply #2 on:** February 05, 2018, 13:55 »

Quote from: increasingdifficulty on February 05, 2018, 13:27

How do you know that not all your video sales are US sales?

Fair point; but I think it's highly improbable that among 100s of sales, all of them are US-based. Could be, just highly improbable.

increasingdifficulty · « **Reply #3 on:** February 05, 2018, 13:58 »

Yes, if you have 100+ sales, it would be quite unlikely, although US buyers heavily outnumber any other country.

I assume you have filled out the W8-BEN? I had to do it again not long ago because it expired, or there was a bug.

cfhdesign · « **Reply #4 on:** February 05, 2018, 15:46 »

I've had the same problem as the OP.
I live in a non treaty country and VB/SB tax EVERY sale at 30% EVEN though it is ONLY US based client sales that should be taxed (I checked this on the IRS website).

I had an email conversation with Mike from VB a couple of years ago and explained that Shutterstock/Adobe/Depositphotos etc all charge only on US based clients, but he said there was nothing they could do! I imagine doing nothing now is all they can do or someone would be liable for a large refund to all the non treaty contributors who are being charged (and have been charged for years) this 30% in error.

So, no, it's not only you!