How exactly are my copyright payments calculated?

(Question # 99)

You define your GROSS MARGIN (that is, before withholding) and we pay you the amount once the withholdings in force have been applied.

What retentions do we apply?

1- The VAT of the country where the sale was made.
2- 2- The Income Tax of your country of fiscal residence (5% in United States)

Once a quarter (see dates hereIn detail:
Once per quarter (see dates here) we accumulate all the author's rights generated in all your stores subtracting the royalties of the canceled or returned orders and we detail all the generated royalties.

If the total of your royalties does not reach the minimum to be settled (10 USD), you will receive an email summary of your activity and these author rights will be accumulated for the next quarter. 

There are 3 fiscal profiles that you, as a user and possessor of one or several personal stores, can have:

  • Private user, autonomous professional or Company.

In the 3 cases, following the criteria of the Tax Agencies, both Spanish and those of other EU countries, Nextalia Ventures SL considers your activity as an operation subject to Intellectual Property and to Tostadora.com. as a simple distribution platform.

In accordance with Spanish regulations (Article 20.On.26 of Law 37/1992 on Value Added Tax), your activity for which we pay you for the exploitation of royalties is exempt from VAT.

According to national and international regulations, your income is subject to the following withholding:

Individual: labour incomes by canon (transfer of exploitation of artistic works)

- 24% in case your country does not have any signed double taxation agreement in force with Spain
- or the % marked by the double taxation agreement if it is signed and in force (for example 5% for US).

Companies and freelancers: economic activities

- 24% in case your country does not have any signed double taxation agreement in force with Spain
- or the% marked by the double taxation agreement if it is signed and in force (for example 5% for US).

(*)IMPORTANT: the value of the withholding may vary depending on the double taxation agreements (CDI) in force between Spain and your country of tax residence at the time of the settlement of your royalties.

Check with your tax advisor if case of doubt.

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