Connecting Readers and Writers discussion

Hello!

I have a quick question, I hope some of you can help me - I started filling my Amazon info to put my fantasy ebook on pre-sale (it will be ready in August) and I was under the (apparently delusional) impression that it's an easy and quick process. However, since I'm not a US citizen (I'm from Bulgaria) "Taxes will be withheld at the 30% standard rate"! This is completely new to me!

I started looking into it and this article (http://www.theindieview.com/2010/09/0...) says that I have to submit several forms. Fine, cool. However it also says that this W-7 form needs to be send with my passport to an "Authorized Agent" and it will take 4-6 weeks!!!

So ... are there any non-US authors here that have gone through this and can give me some advice - is there a way to speed things up? And who exactly do I send this W-7 to? I'm looking at this list (http://www.irs.gov/Individuals/Accept...) and I'm utterly confused!

Thanks in advance,
YZ

Also, as a follow up question (which I guess should've been my main question) - are there ebook platforms that don't require this ITIN nonsense? B&N, Nook? I intended to leave them for later and start with Amazon first but maybe I should go through the smaller platforms first.

First, does your country have a 'tax treaty' with the U.S.? If so, that tax treaty gives the percentage the U.S. can withhold. In my case, the Netherlands, that is 0%, but in some country it can be 5-15%.

You don't need an ITIN, but an EIN. You're the sole employee of your publication firm.

Download W8BEN from the IRS website, and fill it out. Then you call IRS Philadelphia and ask for assistance, ask them to fill out the form for you. Because you have a copy of the form in front of you, you know what they need to fill in.
Be prepared to SPELL EVERYTHING, have the spelling written out in front of you, preferably in NATO, so they don't think your name is spelled with a J.

The IRS in Philadelphia will fill in the form, give you EIN straight away (jot it down!), and mail you the printed version. Once you have the EIN, you can use that number on the tax forms you have to send Amazon.

For a step-by-step explanation, visit this link: http://catherineryanhoward.com/2012/0...

Edit: FATCA changed the procedure. Apparently you can use your own national Tax Identification Number. Check that link.

Yeah, I already got an EIN today - it was indeed a simple 10 minute phone call. With the EIN they'll still take 5% tho - I guess that's as good as it's going to get (Yes, Bulgaria has a tax treaty with the US).

Thanks for the response tho. I didn't actually expect it, this group doesn't seem very active lately. Thanks. :)

Good to see you found the information.

So Bulgaria has a 5% withholding in the tax treaty?

Apparently - that's what Amazon says now that I put in the EIN. Still an unpleasant surprise - I thought it was going to be 0%. But it is what it is.

As a US-based writer all I can say is the infernal-tax collectors of every country will have their due.

I'm subject to the full 30% even though I personally have no other income (the Wife supports me while my primary mission is caring for the tiny demon and smoothing the road for Wife -- a full-time job and a half).

Glad to see you got the issue settled, and getting 95% is better than waiting on 70%.

Well, I'm still paying my taxes in Bulgaria. ;)

And there are some hideous VATs imposed on US authors selling e-copy in the EU. As in on top of the US Royalty Tax.

Well ... everyone's trying to get money from us, the rich authors. :D

Yeah, funny thing about that, at the rate I sell sans promoting I should earn back my investment in copyright registrations, cover art, and proofs about five years after I've been cremated.

I hear you. I even made a successful crowdfunding campaign for the translation of my book, but all the side costs together still devoured all my savings from the last couple of years.

Oh well. I'm at least glad I got rid of the 30% additional tax bullsh*t ... On to dealing with this ISBN nonsense now! :D

Best of luck with the project.