Hi, I'm an Indian seller. Recently I received the Form 16 from Fiverr and I see that they mention the total order amount as my earnings. Which would lead me to have to pay tax on the whole amount. But in actuality, we sellers earn only 80% of that amount and Fiverr takes the rest 20%. For example if someone has total order amount of $1000 then they get $800 out of it. So shouldn't $800 be mentioned in the Form 16?
I believe its only fair that they mention the actual earnings which the seller gets, since we'll be charged tax on the amount mentioned in the Form 16. As per the example, we'll have to pay tax for $1000 when we've got only $800. I wrote to the Fiverr support on this and as expected they asked me to contact local tax authorities if I have a problem with tax regulations 🤦♂️ .
What are your thoughts on this? Isn't everyone facing this?
