Tax Information and W-8 Requirements for Non US Sellers

This article is a guide for non-US sellers including;

  • How to Complete and Submit a Form W-8 to MOJO Marketplace
  • Backup Withholding Tax
  • Royalty Withholding Tax
  • Getting More Help
  • Frequently Asked Questions

If you are a non-U.S. person, your sales to US buyers may be subject to royalty withholding tax of up to 30%.

However, if you are a resident of a country that has an income tax treaty with the U.S., you may be eligible for a reduced withholding tax rate. The full text of these treaties can be found on the IRS website.

A list of the applicable treaty royalty withholding tax rates can be found here. The applicable rates applied are based on the copyright classification.

The purpose of the Form W-8 is to establish your identity and status as a non-U.S person, that you are the beneficial owner of the revenue and whether a lower rate of withholding applies as the result of a treaty claim.  Even if your country does not have a treaty with the US, the form is used to establish that you are not a U.S. person.

If you do not provide a Form W-8, we are required to treat you as a US person and ALL sales will be subject to backup withholding tax of 28% (regardless of the buyer’s location).

If you complete a Form W-8, you must also provide us a Tax Identity Number, otherwise we are required to deduct royalty withholding tax of 30% on your US sales only. More information is provided below.

What’s required?

Non-US sellers are required to complete a standard IRS form called Form W-8 which includes some basic information about you, including your Foreign Tax Identification Number (TIN) and country of residence.

A seller account has one owner, and it is their details which should be in the W-8. That owner can be a corporation or other type of entity, but not a partnership. Partners must nominate one partner to submit a W-8 or W-9.  Withdrawals will only be made to the nominated partner.

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