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[chiangmaibruce]

Hi folks. Thought I'd give this topic a run in the Chiangmai forum first.

If you want to sell an ebook via Amazon you need to first get a USA Tax Indentification number and then lodge particular forms with the IRS, and then with Amazon.

The difference in USA witholding tax - if you can navigate through this process - is significant (5% versus 30%)

Now the nearest IRS office seems to be in Beijing, and of course the process is messier to try and do remotely.

Was just wondering if anyone has been through this process ... how they accomplished it and how long it took

Thanks in advance. CMB

[LJW]

I have a recipe book on amazon.com, but I don't know anything about the taxes..

Edited July 27, 2011 by LJW

[chiangmaibruce]

OK I just found this pre-existing thread:

http://www.thaivisa....ication-number/

but would still appreciate further input as the above thread was in relation to getting a T.I.N for a Thai (I'm Australian), and the responses provided are a little confusing. For example can I get a copy of my Oz passport certified by the MFA office in Chiang Mai (see other thread in this CNX forum) OR the USA consulate here OR would I need to go to the Oz embassy in Bangkok. Hate the thought of doing a special trip to BKK for that + paying the fee & then having the paperwork rejected by the IRS anyway

Edited July 27, 2011 by chiangmaibruce

[chiangmaibruce]

I have a recipe book on amazon.com, but I don't know anything about the taxes..

[media][/media]

Then I think you can probably assume they are currently deducting 30% from your royalty payments - unless perhaps you are a USA citizen and they have you in the system as such

[hml367]

From the US Consulate Chiang Mai web site:

INDIVIDUAL TAXPAYER IDENTIFICATION NUMBER (ITIN)

If you have a spouse or dependent who is not eligible for a Social Security number, but needs an identification number for U.S. federal tax purposes, you can get an Individual Taxpayer Identification Number (ITIN) from the IRS. To ensure that you receive the ITIN in time for file your taxes on time, please apply for it well in advance. For a fee, the Consulate can certify copies of documents required for the ITIN application. Please make an appointment for "other services" via our ACS appointment website.

You can check if the Consulate in Chiang Mai may be able to assist you in getting a TIN.

Edited July 27, 2011 by hml367

[LJW]

Oh, well, the recipe book I am selling is a crappy book, imo

Edited July 27, 2011 by LJW

[chiangmaibruce]

Ok, just a quick note for those who follow ... visited the US consulate this morning after making an online appointment yesterday. The very first response was "no, i don't think we can do that" (not a US citizen) but " I will check". Came back and no problem - out in 5 mins with a lighter wallet, but statement ready to send with form W7 (?) to IRS in Austin Texas.

The IRS web site says it can take 8-10 weeks to process. Then armed with that number (the 'TIN') the next step is completing another IRS form to claim the reduced level of withholding tax (under the Oz-USA tax treaty) and sending this to Amazon.com for their records.

[chiangmaibruce]

A further update posted for the benefit who may go through the same process ... although it's fairly specific to those dealing with Amazon.com

I was recently advised by IRS that my application for a tax number was rejected due to inadequate supporting information. They advised this via snail mail, not email.

I called the IRS .. was very pleased at successfully navigating their phone menu system ... found the right place for international callers enquiring about ITIN's .. waited 15 mins in a phone queue and then spoke to an old biddy for about three mins ... gave her my reference number, answered several security questions, and then naturally I asked "can you please tell me exactly what the problem with my application was?". She quickly said that "I will pass you onto someone who can answer that question". Before I could say anything, I was hearing a phone message to say that callers in that queue were waiting at least 15 mins ... so I hung up saying a few choice words. I then emailed their nearest office to Thailand (Beijing) ... also the only IRS office that lists an email address. (No response to that email)

I then did some more online research and found various threads in the amazon/kindle community discussion forum - and various other places - that highlight a problem with the proforma letter that Amazon provides to foreign authors to attach to their ITIN applications. Apparently many ITIN applications are rejected but Amazon refuses to modify and improve the proforma to comply with IRS requirements. Other ebook sellers will provide an adequate letter so what some authors do is sign up with Amazon competitors .. get the supporting letter .. get their ITIN .. then go back an submit their ITIN to Amazon to get their tax reduced. Quite an insane situation - I wonder whether any Amazon senior execs are even aware of this ongoing problem?

Bit of a pain to say the least ... pondering my next move

Edited September 17, 2011 by chiangmaibruce

[NancyL]

Hate to say it, but it looks like you sign up with an Amazon competitior to get your taxpayer ID number or be prepared to spend more time waiting on hold with the IRS, although it sounds like it may be something that you can't easily correct on your own. I expect other Amazon sellers have tried to get them to resolve the problem.

I used to sell books on Amazon and found the process of getting set up a little frustrating, but once everything was in place it ran like clockwork and was easy, no hassle money for books that we weren't moving in our retail store. But, I'm an American and already had set up an American company with a taxpayer ID number.