Print and Prosper

Tax Withholding

 
Disclaimer – You assume all risks associated with using the advice given below, with a full understanding that you, solely, are responsible for anything that may occur as a result of putting this information into action in any way, and regardless of your interpretation of the advice.

I am not an accountant, lawyer or legal advisor. You may wish to obtain legal advice on this matter.

One of the first things you should do when you are selling books through Amazon, Barnes and Noble etc is to get a Tax Identification Number from the US Tax Office then fill in a W-8BEN form.

By default, the US Tax office withholds 30% of your income generated in the US ie most of your online book/ebook sales.

The UK has a tax treaty with the US which means that if you are resident in the UK then you can get this set to zero. This is far easier is you can be classed as a sole trader or if you have a limited company

The quickest way for you to obtain your TIN is calling +1-2679411040 (using skype will be a lot cheaper). Whe you speak to them let them know you are a sole propietor and applying for a Tax Identification Number. They will ask you a few questions then give you a TIN number.

When you have obtained your TIN then you need to fill in a W8-BEN form for each of the companies in the US that you are receiving money from

For Kindle book income send your form to:
Amazon Digital Services
Attn: Vendor Maintenance
PO Box 80683
Seattle, WA 98108-0683

 

For income created from CreateSpace (Amazon’s Print-On-Demand service) send your form to:
8329 West Sunset Road,
Suite 200,
Las Vegas, NV
89113

You can download the W8-BEN form from here: http://www.irs.gov/pub/irs-pdf/fw8ben.pdf

It is a little bit of work to go through but well worth it in the end!