Payment from the USA W-9?

[Alext333]

Hi All,

We have recently written a piece of work for a USA publication. They are not sure of the tax situation on paying us as they have never made a payment out side of the USA.

Would it be the W-9? Anything else we might need to know?

Thanks for any help

 

[kevinof]

Are you a U.S. citizen or do you hold a green card and are resident in the U.S.? If not then the W9 does not apply. If this is a B2B transaction then just invoice them like any other contract and they just apply the federal tax (as far as I can remember) to the total.

If you are an individual then just send them a bill/invoice and they pay you directly. There is no U.S. tax implication for you if you are outside the U.S. and not a U.S. Citizen (U.S. Citizens pay tax Worldwide no matter where they live)

 

[Alext333]

Thanks for the reply.

Sorry we are a UK based company. And what we need to know is how they would manage the tax with this. They are unsure and have asked us. We know that in the past we have filled out a form for other USA companies but we are not sure what it was.

 

[strikingedge]

It is their job to work out if there's any tax.

You don't charge tax as they reside outside the UK / EU.

I'm not aware of any tax payable by US businesses purchasing services from non-US suppliers. There could be use taxes - not an expert on this area - but again, not your problem.

 

[Alext333]

Hi Striking, I agree normally it wouldn't be our problem but they are asking us.

This is the exact question "Can you tell us in detail how you receive payment from other US companies without a US taxpayer ID for their year-end taxes and 1099 form?"

Anyone know the answer?

 

[Moocher]

The form you need is a W8-BEN, on which you declare you are a resident of the UK under the tax treaty etc. etc. They then pay you the invoice without any deduction of tax. Easiest thing to do is to Google W8-BEN and download the editable pdf. There are different W8-BEN forms so make sure you get the right one.