Foreign Authors wishing to publish on Amazon. Read this, it’ll save you a lot of time.

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IRS Form W-8BEN

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This post is for Foreign Authors wishing to publish on Amazon; the complete lowdown on how to get a US TIN (Tax Identification Number) and file a W8-BEN.

Below is what it says on DTP Amazon:

2. I am a foreign resident in a country with a U.S. tax treaty and have provided a Form W8-BEN, but the W8-BEN does not provide a valid U.S. TIN. Will taxes be withheld at the applicable treaty rate?
NO. Taxes will be withheld at the 30% standard rate because a valid U.S. TIN on your form W8-BEN is a prerequisite to obtaining a reduced treaty withholding rate under applicable U.S. tax law.

O.K. That’s me. So I need a W8-BEN and a TIN right?

NO!

Read on it’s not much more complicated – you need w8-BEN, an ITIN and a W-7.

This guide will help you.

First check that your country of residence has a tax treaty with the US (IRS). You can get that information from the IRS web site. If your country doesn’t have a tax treaty then I suggest you sell through Amazon UK which doesn’t withhold taxes at source or Smashwords. But Amazon is the dominant distribution channel in the ebook space, and Amazon US is a lot bigger in terms of market than Amazon UK. So if your country does have a tax treaty and item 2 above applies to you then read on.

The first form you need is a W8-BEN. You can download it here. I highly recommend that you read the instructions for filling out the form, because in there you’ll find out you also need an ITIN.  What does a form W8-BEN do?

  • Establish that you are not a U.S. person;
  • Claim that you are the beneficial owner of the income for which Form W-8BEN is being provided or a partner in a partnership subject to section 1446; and
  • If applicable, claim a reduced rate of, or exemption from, withholding as a resident of a foreign country with which the United States has an income tax treaty.

To get an ITIN you need a Form W-7 (I swear I am not making this up). WTF is an ITIN! It’s an Individual Tax Identification number. What does an ITIN do?

  • If you do not have a SSN and are not eligible to obtain a SSN, but you have a requirement to furnish a federal tax identification number or file a federal income tax return, you must apply for an ITIN.

Got it?

A list of Acceptance Agents and Authorized offices that can accept documents for ITIN are the IRS website.

In Summary

  1. Download forms W-7 and W8-BEN
  2. Fill in form W-7.
  3. Take Form 7 and your passport along to an Authorized Agent. or mail them to: Internal Revenue Service, Austin Service Center ITIN Operation P.O. Box 149342 Austin, TX 78714-934
  4. Wait for 4-6 weeks
  5. When you have received your ITIN number fill out form W8-BEN (HEY Wake up we’re almost done).
  6. Mail the forms to Amazon.
  7. You’re done – you just saved 30% of your income

Now I’m going to drink a snifter of Cognac and smoke a large cigar. Bureaucrazy and Taxes have that effect on me…

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2 thoughts on “Foreign Authors wishing to publish on Amazon. Read this, it’ll save you a lot of time.”

  2. Nah, you don’t need a W7 nor an ITIN. Nor do you need to wait all those weeks for the IRS to mail these complicated forms.

    Here’s the fast track: call the IRS main office in PA. Tell them you’re a small publisher, and have a company name ready. Ask for an EIN # for the purpose of 0% tax withholding. When they ask for your physical US office address, tell the truth: you work from home in your Treaty country, and do business through Amazon.

    They will do the paperwork with you step by step over the phone, and mail you your Employer ID # (EIN) within a couple of weeks.

    When you fill our your W8BEN for Amazon, use the EIN # given, and call yourself an Individual. Don’t bother with your company name. I’ve found it just confuses the hell out of Amazon. Use your own name and that’s it.

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