itunes fee of 30%?

HansPlcGuy
HansPlcGuy Posts: 34 traveler rank
in First-time course creation

Hi Udemy,

I was just checking my revenue report, and I have a couple of questions:

- 20% is deducted for tax -> I don´t live in the USA, I live in Austria which has a double tax treaty with the US. I filled out the W8-BEN form via the Udemy website and it was succesfully registered. So normally, I shouldn´t pay income tax in the US, only in Austria. Why is there still 20% deducted?

- 30% is deducted for iTunes fee. This seems like a huge amount. I can see that it´s mentioned on your Instructor Revenue Share page, but it seems a very high percentage to me. Is it allowed to inform students not to buy from the iOS or android app but directly from Udemy search or through a referral or coupon link?

Earnings.png

Thanks a lot in advance!

Best regards,

Hans Schrynemakers

Comments

  • Thor
    Thor Posts: 2,329 rolemodel rank

    That is the normal fee on iOS and Android stores.

  • HansPlcGuy
    HansPlcGuy Posts: 34 traveler rank

    Ok thank you Thor for the quick reply. I thought these apps took 30% on the salesprice of the apps themselves, not of what the apps are offering of content. My lack of knowledge I guess.

    Do you happen to know what the 20% tax is then? This seems to be different from one country to the other, so my guess is that it´s VAT? Is this something the instructors get paid back or how does this work? Any more official information from Udemy on this topic?

    Thanks,

    Hans

  • NickNyxson
    NickNyxson Posts: 11 traveler rank

    Hey Hans,

    Unfortunately, you can't do anything about iOS or Android deduction, even if the sale was made through referral link they will still take 30% and Udemy can do nothing about it. Yes, it seems unfair but this is the reality.

    Now about the tax.

    I am not s 100% sure but 20% is not taken from you, it is taken from the customer and it seems like it is VAT tax which customers in EU are obliged to pay. Plus the price paid is in Euros, so it is paid from customers in the EU (Must definitely be VAT).

    However, if Udemy is additionally taking withholding tax from you (it can be seen in your revenue report in your monthly earnings) then it is the thing that you need to work on.

    Here is the video if you want the help with that: https://youtu.be/S4xMyPQxNrw (It is a video made by myself).

    I hope it helps.

    Kind Regards,

    Nick Nyxson

  • HansPlcGuy
    HansPlcGuy Posts: 34 traveler rank

    Thanks a lot Nick for your time and your reply.

    It makes sense that it is VAT. I make less on each course sold, because the net revenue from each course is the course selling price minus the VAT (typically 20% but depends on where the student is from, I´ve had VAT tax deducted between 20-25% so far).

    E.g.

    • Course selling price: €99.99
    • VAT deducted: -€19.99
    • Net revenue: €80

    And of this net revenue, Udemy takes 50% in case of an organic udemy purchase, or 3% incase of a referral link or a coupon link. So this VAT decreases the net amount earned by the instructor.

  • NickNyxson
    NickNyxson Posts: 11 traveler rank

    hmm, I actually made calculations and you seem to be right. VAT is charged from the seller in this case (both you and Udemy).

    It seems weird though because VAT is usually charged from the customer, not the seller (in any business, not just Udemy).

    Contact Udemy and make them clarify that.

  • DanielHayes080
    DanielHayes080 Posts: 1 observer rank

    Udemy can do something about the 30% iTunes fee. You can stop being so greedy and disrespectful to the course creators who pay your wages. Maybe you could absorb some of that 30% yourselves..... just an idea

  • NickNyxson
    NickNyxson Posts: 11 traveler rank

    It's an Apple thing. Udemy can't do anything about that.

    The court case Apple v. Epic Games is exactly about that.

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