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Tipalti & Tax Update FAQ

As part of an effort to collect updated tax information from Creative Market Shops, we are reaching out to shops in stages to confirm tax information. Creative Market has over 20,000 shops, so we appreciate your patience, support, and feedback as we go through this process. 
 
Contact us at support+tipalti@creativemarket.com with questions and we'll be happy to help!
 
How often will Creative Market collect tax information?
Creative Market will collect tax forms according to the best practices set forth by the industry and IRS (Internal Revenue Service). In general, we’ll need updated forms every 2-3 years. Shop Owners and Affiliate Partners are obligated to update their own tax information within 30 days of any changes. 
 
Who is Tipalti?
We are partnering with a new vendor, Tipalti. To start, we’re using Tipalti’s platform to gather and confirm tax information only. Over the coming months, we’ll be integrating our payouts with Tipalti which will provide our Shops and Partners more flexible payout options.
 
We chose Tipalti as our partner due to their stringent security protocols and impeccable tax compliance. 
 
Will my payout be delayed?
As long as you have completed and submitted both your tax information and the Affidavit of Unchanged Status, your payout will be released as scheduled. If more information is needed after you have submitted your forms, we’ll continue to work with you. 
 
Do I need to supply all of the tax information Creative Market asks for or can I choose to only supply a portion?
The IRS requires that the relevant forms be filled out completely. The absence of required tax information may result in (additional) withholding. Do note that if you are a resident of a country that has an income tax treaty with the U.S., you may be eligible for a reduced rate or exemption from withholding.
 
You may make a treaty claim via the correct tax form in to have a lower withholding rate for your US-source sales of products and bundles.
 
For example, if you are a Bangladesh tax resident, Article 12(2) of the applicable treaty states that the US government may levy a 10% tax on US-source royalty income. This tax is then collected through withholding.
 
Without a treaty claim, Creative Market is required to withhold at a 30% rate. Note that if your country does not have a tax treaty with the US, we are required to withhold 30%.
 
Do I need to include a Taxpayer Identification Number?
A Taxpayer Identification Number (also called a TIN) is necessary to make a treaty claim. Without a treaty claim the IRS (The United States Internal Revenue Service) mandates that we withhold 30% of all sales made to customers within the United States.
 
What if I do not not have a TIN or do not know if I do?
Many countries issue citizens or residents a TIN, but it may be called something else. Please see the table below for a list what your TIN maybe called. If your country is not on this list, it doesn’t mean you do not have a TIN. Your TIN would be a unique number issued by your government which you may use to pay taxes and identify yourself. It can often be found on your government issued identification card or passport. 
 
This resource may prove helpful to you in identifying if you have a TIN where you can find it. You can  can also apply for a TIN from the IRS. It is free to apply. 
 
We encourage you to verify all information with your government. 
 
 
Country
What your TIN may be called (please verify with your government)
Australia 
TFN
Bangladesh
TIN or eTIN
Belarus
UNP
Belgium
Numéro National (NN)
Bulgaria
Unified Civil Number (UCN)
Canada
SIN
China
ID Number or Credibility Code
Czech Republic
Personal Number
Estonia
personal identification code
France
numéro fiscal de référence or numéro SPI
India
PAN
Indonesia
NPWP
Israel
ID Number 
Italy
IT-TIN (Codice fiscale)
Latvia
ID Number (on ID card)
Romania
CNP (Found on ID Card, Passport)
Russia
INN (Or other number used for tax purposes)
Spain
National Identity Card Number
Turkey
National Identity Number
Ukraine
Individual Taxpayer Identification Number
United Kingdom
NINO or UTR
 
 If my country has a tax treaty with the US how will that affect what info I need to supply to Creative Market and how will it affect what if anything will be withheld from my earnings?
If your country has an income tax treaty with the US, please fill out the treaty benefits portion of the Form W8-BEN, W8-BEN-E, or other. Generally, an income tax treaty will provide for a reduced or zero rate of withholding on royalty income. Please note that to claim a treaty rate you must provide a taxpayer identification number. 
 
Do I need to pay tax to the IRS directly?
Creative Market will be collecting and remitting any withholding to the IRS. The US government will not expect you to self-assess this tax.
 
Are my Creative Market earnings classified as royalties?
Generally, transactions in digital creative content give rise to royalty earnings. Your earnings may be subject to withholding based on your country’s income tax treaty with the US.
 
How can I determine if my country has a tax treaty with the United States?
 
Do I need to supply all of the tax information Creative Market asks for or can I choose to only supply a portion?
The IRS requires that the relevant forms be filled out completely. The absence of required tax information may result in (additional) withholding. Do note that if you are a resident of a country that has an income tax treaty with the U.S., you may be eligible for a reduced rate or exemption from withholding.
 
You may make a treaty claim via the correct tax form in to have a lower withholding rate for your US-source sales of products and bundles.
 
For example, if you are a Bangladesh tax resident, Article 12(2) of the applicable treaty states that the US government may levy a 10% tax on US-source royalty income. This tax is then collected through withholding.
 
Without a treaty claim Creative Market is required to withhold at a 30% rate. Note that if your country does not have a tax treaty with the US, we are required to withhold 30%.
 
What are the names of the IRS Tax Forms and who submits them?
FORM
SUBMITTED BY
W-8 BEN
(common)
Non-US Persons (Individuals) to provide a Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting
W-8 BEN- E
(common)
Non-US Persons (Entities) to provide a Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting
W-8 ECI
Non-US Persons to Claim That Income Is Effectively Connected With the Conduct of a Trade or Business in the United States
W-8 EXP
Foreign Governments, International Organizations, Foreign Central Banks of Issue, Foreign Tax-Exempt Organizations, Foreign Private Foundations, and Governments of US Possessions to provide a Certificate of their Status
W-8 IMY
For use by Foreign Intermediary, Foreign Flow-Through Entity, or Certain US Branches to provide a Certificate of their Status and transmit a withholding statement and respective tax documentation for the Beneficial Owners(if applicable)
W-9
US Persons (individuals and entities) to provide their US Taxpayer Identification Number and Certification
 

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