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Tax Question: Selling as a Canadian on Amazon

by sylviad
2 replies
Hi everyone,

I'm trying to launch my first book on Amazon, but apparently there are issues re taxes. If you aren't in the US, you need to submit some forms and get some tax number in order to avoid paying the 30% IRS tax on each sale.

Canada shows as one country with tax withholding of 0%. Yippee! BUT, it only takes effect if I can get them the right tax form/tax number to them.

Any Canadians here selling books on Amazon who can enlighten me as to exactly what I need?

They're talking about a W-8BEN and getting a US tax ID number (TIN). But then they're talking about an ITIN for individuals (I think this is what I need) and an Employee ID Number (EIN) which I don't understand since I'm not an employee.

The information provided on Amazon is much clearer, to a point, than what is on the IRS site but it is still confusing.

Help!

Thanks.

Sylvia
#amazon #canadian #question #selling #tax
  • Profile picture of the author Publisher1953
    You will probably find your answer about how to find a TIN quite quickly with a simple google search (I did, but can't post links here, it seems)

    The EIN relates to a U.S. based business, which would be its tax registration number.

    The process has proved "insurmountable" for me (practically) although in fact I have a properly registered and incorporated businesses in both the U.S. and Canada. Unfortunately, my Amazon account is in the name of a Canadian corporation so I cannot use my US business EIN, and because it is a corporate rather than personal account, I cannot request/claim a personal TIN (which I would have, in any case, as part of the US business-set up resulted in my getting a social security number, which can be used in place.)

    The amount of money I get from Amazon now (about $100 every three or four months) isn't great enough to justify rejigging the corporate structure, so I just live with the witholding tax.
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    • Profile picture of the author sylviad
      Thank you for your insight. Sorry to hear you had such a difficult time, probably made more difficult because you ARE a company. Don't know why being a company always makes things more complicated.

      I'll head back over to the IRS and do more reading. Maybe it'll come clearer when I've had lunch.

      But... if anyone has a better answer, I'd appreciate hearing it. Thanks.

      Sylvia
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