Shop Owner Guide to Taxes & Payouts

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This article is your go-to resource for learning all about how Creative Market handles Shop Owner Payouts and Tax Withholdings. We encourage all of our Shop Owners and Affiliate Partners to review this entire article carefully as you make changes to your Payout & Tax Setup page, especially if you have questions about Payouts and Taxes. However, if you still have questions after reading this guide, please do not hesitate to reach out to us here or via payouts@creativemarket.com .

Click on a topic below to learn more:

1. Creative Market's Tax Form
2. Payouts
3. Taxes

Looking for information on the 2020 tax season? We have helpful dates and information in our Tax Season Guide!

Creative Market's Tax Form

The Creative Market tax and payout system is built on a platform called Tipalti, which collects and securely stores all your tax and payout information. However, the Creative Market Support Team will continue to be your resource for any and all payout questions.

Common Tax Form Questions

Will I need to register with Tipalti?
Registration takes place through the Creative Market platform; you will not need to create a username or password with Tipalti.

I've been selling here for a while, and this is different. When was this system introduced? 
These changes were rolled out in January 2018.

What information will I need to gather to complete my tax form and provide my payout details?
This will vary based on your country and filing status, but in general, you should have the following information on hand when completing your tax form:

• Taxpayer Identification Number (See this section for more details.)
• Copy of Passport or other government-issued ID
• Physical Address
• Banking or PayPal Information 

Payouts

Requesting a Payout

You have between the first and last day of the month to request a payout. Requests must be made by 11:59 pm Central Time on the last day of the month. We'll begin processing your payout after the first five business days of the first day of the following month.

Please note that it may take funds sent through certain payout methods (such as transfers) or to some countries longer to arrive in your account. Funds should arrive no later than the 10th of each month, but please note that this may not always be the case due to things like bank holidays or the 1st of the month falling on a weekend, etc. 

Requesting your Full Monthly Earnings

Instead of having to time your request for the last day of the month to receive your full month’s earnings, you can choose to request your entire month’s earnings on any day of the month. However, if you’d rather, you may still choose to withdraw a specific dollar amount.

We have also included the ability to edit your payout request; you will no longer need to make multiple requests each month.

Auto Payment 

By selecting the Auto payment option, payments will automatically be processed and sent to you at the end of each month. Auto payments are processed at the same time as one-time payments, during the first five business days of the month.

Payout Methods

Creative Market is committed to offering you a free, fast, and easy way to get paid. We offer the following payout methods:

*2.5% FX fee applies

Common Payout Questions

How will the fees be paid?
If you choose a method that has a fee, that amount will automatically be deducted from your payout. Please note that some intermediary banks may charge an additional fee for Wire payouts and/or currency conversion. This fee is not controlled by Creative Market, and you should contact your bank to determine if you will be charged this fee.

Is there a minimum threshold in order to request a payout?

Yes. The minimum payout you can request is $20.

What if I request multiple payouts each month?
These payouts will be combined and processed as one payout.

Are all payout methods available in my country?
Some payout methods are not available in all countries. You can view a list of available payout methods in your country here.

What if I can't get ACH/eCheck payments in my country? Does this mean there is no method with waived transaction fees for me?
To ensure you have a free way to receive your earnings, there will always be at least one method in each country wherein Creative Market will pay all transaction fees. If ACH/eCheck is not available, then Creative Market will cover 100% of your PayPal transaction fees. If neither ACH/eCheck/PayPal is available in your country, Creative Market will cover your Wire Transfer fees. You can find out which fees are waived in your country here.

Why don't you offer Payoneer?
Creative Market is not an affiliate of the Payoneer network. However, our payment system does offer ACH payments, which you may be able to use to process a payment to your Payoneer Debit Card if you have one.

If you would like to be paid to your Payoneer Debit Card, please do the following:

1. Sign in to Creative Market and go to your Tax and Payment Setup page
2. In Step 1 (Address), click the Edit button
3. Towards the bottom of the page, click, "Select to be paid in a different country than the above"
4. For "Payment Country,” select the country where your Payoneer account is located (United States)
5. Click “Next"
6. In Step 2 (Payment Method), select "ACH" from the Payment Method dropdown
7. Because your payment country has changed, you may be required to re-submit your tax form and provide supporting documents in Step 3 (Tax Forms)**

**You will be unable to request a payout until your Supporting Documents have been approved. It can take up to 7 business days for Supporting Documents to be approved. Please note that while your documents are still pending approval you will see the following message under the "Request Payouts" section of the Payouts page: "Please visit the Payment & Tax Setup tab to submit your tax information. You will not be able to request a payout until you complete this form."

Please note that we are required to withhold at the maximum withholding rate of 30% until your tax form has been validated/approved.

IMPORTANT: As we are NOT an affiliate of Payoneer, we cannot make any guarantees as to the successes of ACH payments to your Payoneer Debit Card. It is strongly suggested that you contact Payoneer to confirm whether you might be able to receive an ACH transfer to your Payoneer Debit Card.

Why can't I choose PayPal as my payment method?

If you don't see PayPal as an option when you're going through the Tax and Payment Setup, it's because you live in a "PayPal Non-Receivable" country. PayPal accounts held in PayPal Non-Receivable countries can send payments, but they cannot receive them. This does not mean that receiving your payout via PayPal is not an option, however!

If you would prefer to use PayPal as your payment method, you may do so only if you have a PayPal account located in a PayPal receivable country. To choose this method, please do the following:

1. Sign in to Creative Market and go to your Tax and Payment Setup page
2. In Step 1 (Address), click the "Edit" button
3. Towards the bottom of the page, click, "Select to be paid in a different country than the above"
4. For "Payment Country,” select the country where your PayPal account is located
5. Click “Next"
6. In Step 2 (Payment Method), select PayPal from the Payment Method dropdown
7. Because your payment country has changed, you may be required to re-submit your tax form and provide supporting documents in Step 3 (Tax Forms)**

**You will be unable to request a payout until your Supporting Documents have been approved. It can take up to 7 business days for Supporting Documents to be approved. Please note that while your documents are still pending approval you will see the following message under the "Request Payouts" section of the Payouts page: "Please visit the Payment & Tax Setup tab to submit your tax information. You will not be able to request a payout until you complete this form."

Please note that we are required to withhold at the maximum withholding rate of 30% until your tax form has been validated/approved.

I have a bank account outside of my country of residence that I would prefer to be paid to. Can I do this?

1. Sign in to Creative Market and go to your Tax and Payment Setup page
2. In Step 1 (Address), click the Edit button
3. Towards the bottom of the page, click, "Select to be paid in a different country than the above"
4. For "Payment Country,” select the country where your account is located
5. Click “Next"
6. In Step 2 (Payment Method), select "eCheck" or "Wire Transfer"* from the Payment Method dropdown
7. Because your payment country has changed, you may be required to re-submit your tax form and provide supporting documents in Step 3 (Tax Forms)**

*Please note that you may be responsible for the $26 transaction fee for international wire transfers. You can view if Wire Transfers are waived in the country your account is located in here.

**You will be unable to request a payout until your Supporting Documents have been approved. It can take up to 7 business days for Supporting Documents to be approved. Please note that while your documents are still pending approval you will see the following message under the "Request Payouts" section of the Payouts page: "Please visit the Payment & Tax Setup tab to submit your tax information. You will not be able to request a payout until you complete this form." 

Please note that we are required to withhold at the maximum withholding rate of 30% until your tax form has been validated/approved.

You can view what payout method has waived transaction fees in your country here.

I received my payout via PayPal, but the amount shows less than what I requested. Why?

If you live in a country where the PayPal transaction fee is not waived then you will be responsible for paying the PayPal transaction fee in the amount of 1% of your total payout. This amount will be deducted from your payout before being issued via PayPal.

My payment was sent to the wrong PayPal email address, what happens now?

Payouts are issued based on the information your provide in the Tax and Payment Setup, so it is imperative that you provide the correct information in order to ensure you receive your payment. Creative Market is not responsible for payments issued to incorrect PayPal email addresses as the result of typos or other types of user error.

If the payment was issued to an invalid or unclaimed PayPal email address, PayPal will likely reject the payment within 30 days. If this happens, the funds will automatically be returned to your Creative Market account.

If I accidentally have a payment sent to the wrong PayPal address, can I refund the payment back to you?

No. Due to limitations of our system integrations, Creative Market does not accept refunded PayPal payments. If you choose to refund a payment, you risk forfeiting the funds to that payment.

Why does my PayPal receipt list the payer as Tipalti, Inc.?
Because our payouts are processed through our payment partner, Tipalti, you will note that they are listed as the payer on your PayPal receipt. Please note that detailed payment invoices that mention Creative Market can be provided upon request. Just reach out to our friendly Support team and they'll be happy to generate one for you!

My payout was deferred for not meeting the minimum threshold. What does this mean?

Your payment was deferred for the following reason: Below minimum payment amount (USD 1,030.00** equivalent in your local currency). 

In order to request a payout in your local currency, the amount requested must be the equivalent of $1030 USD**. If you'd like to receive a payout less than $1030 USD, please update your Tax and Payout Setup to request your payment currency to USD for your next payout request.

**please note that $1030 USD is the standard threshold amount, but threshold amounts can vary based on your local currency. To confirm the threshold for your local currency, visit Step 2 of the Tax and Payment Setup.

How are foreign transaction fees charged when receiving an ACH/eCheck payout in my local currency?
The 2.5% FX fee will automatically be debited from your payout at the time it is submitted to your bank.

Help! It's after the 15th of the month, and I didn't receive my payout.
If you didn't receive your requested payout by the 15th of the month, please contact our Support team here and let them know. You have 90 days from the payment date to submit a claim regarding any issues with your payout. After 90 days your funds will be forfeited.

Taxes

Tax Forms

The Internal Revenue Service (IRS) of the United States (U.S.) requires that the relevant forms are filled out completely. The absence of required tax information may result in (additional) withholding. 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.

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 collected through withholding on our Creative Market Sales.

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%.

How does withholding work for earnings through the Affiliate Partner Program?
These earnings are subject to withholding, and you will still need to complete the proper tax form.

What are the names of the IRS Tax Forms, and who submits them?

Withholding Rates

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. 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. You may view a list of the current withholding rates here.

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?
Please click here for the complete listing of all US tax treaties.

How is tax withholding calculated?
We withhold the amount indicated on your tax form for each product you sell to a US buyer. Your sales page will show columns illustrating the breakdown of earnings and tax withholdings.

Why is the tax withheld from each sale lower than the sale price? 
If you notice that tax withheld is lower than the sale price that's because the buyer used a discount and the tax is based on the discounted amount.

Why do you take taxes from the product's sale price instead of the amount I earned from the sale?
US tax laws require us to withhold from the original sales price. We must comply to the letter of the law, so the tax is calculated from the original sales price.

Taxpayer Identification Number

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 mandates that we withhold 30% of all sales made to customers within the United States. All shops will be automatically withheld at 30% until they have submitted a valid tax form and/or made a valid treaty claim.

What if I do not have a TIN or do not know if I do?
Many countries issue citizens or residents a TIN automatically, but it may be called something else. Your TIN would be a unique number issued by your government which you may use to pay taxes or identify yourself. You may be able to find it on your government-issued identification card or passport. In most cases you may easily apply for a TIN from your government. You can also apply for a TIN from the IRS. It is free to apply and receive a TIN from the IRS.

Please see the table below for a list of what a TIN may be called in your country. If your country is not on this list, it doesn’t mean you do not have a TIN. Additionally, this resource may prove helpful to you in locating your TIN.

What is Supporting Documentation?
For compliance reasons, you may be required to submit Supporting Documentation by request of our payment partner. 

If you are filing individually (meaning you do not have an entity or company and you filed a W8BEN) the following documents may act as Supporting Documentation:

• A certificate of residence - A certificate of residence issued by an appropriate tax official of the country in which the payee claims to be a resident that indicates that the payee has filed its most recent income tax return as a resident of that country.
• Individual government identification - This would include any valid identification issued by an authorized government body that is typically used for identification purposes (such as a passport).
• A third-party credit report.

*NOTE: For most users filing individually, a passport is their preferred documentation.

If you are filing as an entity (meaning you have legally incorporated and are a company, corporation, or other and have filed a W8-BEN-E or other entity form):

• General documentary evidence: any organizational document (such as articles of incorporation or a trust agreement), financial statement, third-party credit report, letter from a government agency, or statement from a government website, agency, or registrar (such as an SEC report).
• Entity government documentation: any official documentation issued by an authorized government body (for example, a government or agency thereof, or a municipality).
• Payee-specific documentary evidence: a letter from an auditor or attorney with a location in the United States that is not related to the withholding agent or payee and is subject to the authority of a regulatory body that governs the auditor's or attorney's review of the chapter 4 status of the payee, any bankruptcy filing, corporate resolution, copy of a stock market index or other document to the extent permitted in the specific payee.

*NOTE: For most users filing as an entity, a financial statement or papers of incorporation are their preferred documentation.

How long will it take for my Supporting Documents to be reviewed and approved? 

It can take up to 7 business days for Supporting Documents to be approved. Please note that while your documents are still pending approval you will see the following message under the "Request Payouts" section of the Payouts page: "Please visit the Payment & Tax Setup tab to submit your tax information. You will not be able to request a payout until you complete this form." (See below). Please note that we are required to withhold at the maximum withholding rate of 30% until your tax form has been validated and approved.

Disclaimer: Creative Market does not provide tax advice. For further information and to ensure you are complying with tax laws, please consult a tax professional.