Affiliate Tax Tips for Non-US Citizens
Hi everybody;
I'm writing this post with the intention of having a gathering place for this hugely important info. This post is to help get input from everyone who can share their particular country's tax form regulations with their own countrymen & women.
I've seen that I'm not alone in my lack of of tax knowledge, concerning my affiliate commissions. I think more than a few of us are floundering here;)
WE NEED TO KNOW EXACTLY WHAT NUMBERS TO FILL OUT ON OUR AFFILIATE PROGRAM REGISTRATION FORMS.
(OK Terry...tell us how you REALLY feel..LOL).
As affiliate marketers, we are united. And it's likely safe to say that we share the belief that the biggest and most lucrative market to sell to, is the good ol' USA.
So...what to do about being taxed on an even playing field?
When I sign up with Amazon.com or another affliliate network, they ask me for my SSN (Social Security Number), which we don't have in Canada.
We do have a SIN (Social Insurance Number), but from what our own Bigbroian says, we need to instead give them our Tax ID#.
Further, many affiliate networks ask for the W-8BEN tax form. Since the US has a withholding tax of around 30% for workers outside its borders, it would seem crucial for non-US citizens to submit this.
When the IRS sees this, it will tell them NOT to withhold that 30% chunk of money. In other words, a foreign company would be allowed to skip the withholding tax, and not be taxed twice!
Bigbroian, our own Ian, has kindly instructed Canadians to go to the CRA website, and get their Tax ID# to handle the GST in Canada.
hron, our own Hans, shows us the Danish version of the W-8BEN form...this appears to be close to the Canadian version as well.
I have been involved in these questions before...
Please right-click on each link below, then "open in new window", to see some valuable input by our good WA friends here.
https://my.wealthyaffiliate.com/getting-started/wh...
https://my.wealthyaffiliate.com/getting-started/pl...
https://my.wealthyaffiliate.com/getting-started/he...
Folks, I'm no authority at all in these matters, and in fact I'm inviting everyone involved to please kindly help put us, in all countries, on the correct path here.
If you think this is a vital conversation, please check the little green box below...
Thanks so much!
Terry
Recent Comments
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Hi folks;
Here is the rest of the conversation Ian and I had last night:
TERRY
Hi Ian;
I hope you are enjoying the Victoria Day weekend:)
Thank you so much for your Canadian tax pointers.
After all that, something occurred to me.
I'd been asking Kyle about filling out W-8BEN forms to join affiliate networks. I also asked him about getting a Tax ID#.
He told me that "we don't need the CRA for any aspect of our business".
But maybe I've had this all wrong.
It occurs to me that we'd only need to register for a GST/HST account at CRA, if we're selling a product or service?
I myself am only doing affiliate marketing, and likely selling on http://Amazon.com (US).
So am I addled here, or what - LOL:))
Sorry to drag this out, but with what Kyle is saying to me...
Thanks for your patience!
Best:)
Terry
IAN REPLIED:
Hi Terry. Kyle is right if you are NOT selling anything but, correct me if I'm wrong, you plan to sell through Amazon (US), right? Are you going to be selling to Canadians as well?
If that's the case, you need to file for exemption in the States, and get a GST ID# for Canada. If you don't get one, and you sell ANYTHING for which you get money from Amazon, the CRA can come back on you for the GST you either charged or did not charge, and they add penalties. They look at your bottom line and then ask for the 5% whether you charged it or not. You have to prove to them that the sales were only in the States and there were no Canadian customers/clients in your list.
I got caught that way once - but only once. I learned to CYA real quick whether I needed to or not. Better safe than sorry, besides with a GST ID#, you can file for any GST you PAID OUT on anything, and get a rebate for it. My rebates average $425 per quarter. Do the math. I spend over $8500 per quarter and get all the GST back. That's like having an extra mortgage payment handed to me each year.
Hope this helps. It's not costly to set up, but it CAN be costly if you miss something like this.
TERRY:
Hi Ian;
Thanks so much, eh.
Kyle surely knows that I am an affiliate marketer, and I make commissions from Amazon. But I don't sell physical products.
But I think I hear what you are saying...
What if I only apply to Amazon .com?
Then no GST worries of course, you say?
IAN:
If you apply to Amazon .com with no mention that you are Canadian, then the IRS gets in the mix, and I, for one, refuse to deal with a bureaucracy that eats people for lunch. They are totally inflexible where money is concerned. Just look at the number of celebrities down there that are bankrupt due to their actions.
TERRY:
Thanks again, Ian.
I hear you about what monsters the IRS are.
What I'm saying is, if I ONLY affiliate market to the US, I could avoid all the GST headaches eh?
I know you are saying it great to get the refunds...but I'm hoping to keep things simpler?
IAN:
If you are only marketing to the US, then you only have to deal with the IRS. GST is a moot point at that time.
Hey Terry. I wonder if WA member Lori3030 would have some input to shed more light on this topic. She's Canadian too and I think I read on her profile that she was an attorney for a time... She might be able to set us on the right path... She seems very knowledgeable about a lot of things. I'll try to find her... :)
Hi, Terry a very good post thank you. If our respective countries have reciprocal taxation arrangements with the USA, then it makes our progress a whole lot easier. Currently, it seems that in most instances we can register as a noncitizen and use our country of origin taxation identification number for the purpose of signing up to some US affiliate programs. From observation tax departments worldwide are struggling to come to terms with the rapid expansion of online commerce. One of the elephants in the room is GST and how it is going to apply across borders.
This is quite a big topic and if we are marketing within the US we definitely need to be up with the play . One of the maxims that all tax departments run on worldwide is that ignorance is not an acceptable defense. I am watching this discussion with great interest. Hope I didn't go off topic too much.
Hi Alexander; thank you.
About the elephant in the room - true, eh;)
I think you are right on the topic, my friend:)
See the conversation between Brian and me, which I'll post now...!
Well done Terry. You got it right the first time. More than I can say for my first time. Took me 3 tries.
Many thanks for this Terry. I am in the UK, and they accepted my NI number, that is only number I have :)
If you have registered as a business/self-assesment you should have a UTR code Chrissie which would be the 1st choice, though some will accept NI No.
Thanks for the blog, Terry. It has been a question on my mind too, especially about the GST. Thanks for the WA links. I will read them shortly. If I learn more, I will share also.
Lisa
Keith from the UK we need to use our
UTR code (Unique Taxpayer Reference)
You get this when you have registered for self assesment
if not than National Insurance No. might get accepted
Hello Dave, thanks for the information, however, I am now a Canadian citizen, hence I am following the information Terry is putting together.
Thanks again -
Keith
Hey Dave!
Keep up the good info, bro...this post is for EVERYBODY who's outside the US - good work:)
Hey Keith:)
Yep, you and I and Lisa and others are on this same track...the CN Railway I believe;)
Everybody out there...this post is for EVERYONE outside the US...so please keep the help coming...:)
Yes, I like that! On the same track... I'm definitely close to the CN Track! No CP here, shucks! Lol
Lisa
I would definitely say to be "legal" and not get anyone into any financial trouble, check with a tax attorney or check with the individual affiliate site as according to the country that you live in. I'm sure this is not unique and I would hate to see anyone get into legal trouble.
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OK folks...so here's the first thing I see that makes me scratch my head:
What you will need
...foreign (non-U.S.) income tax identification number if applicable...