If a buyer on CONNECT resides in the United States, withholding tax must be paid in the U.S. The tax rate is applied based on the treaty agreement between the U.S. and the seller's country. This tax is automatically calculated by CONNECT when the buyer purchases the item.
The W-8BEN, W-8BEN-E, and W-9 forms are U.S. tax forms used to provide important information from the Connect platform for tax reporting purposes. Here's what they mean:
W-8BEN
Used by individuals who are non-U.S. residents to certify their foreign status and claim any applicable tax treaty benefits for reduced or exempt U.S. withholding taxes.
Typical for individuals who sell items on Connect and are not U.S. citizens or residents.
W-8BEN-E
Business entities outside the U.S. use it to certify their foreign status and claim treaty benefits.
Applicable to non-U.S. companies or organizations selling on Connect.
W-9
Used by U.S. persons (individuals or entities) to provide their Taxpayer Identification Number (TIN) to the payer for tax reporting.
Required for U.S.-based sellers on the platform.
Filling out these forms correctly ensures compliance with tax regulations. If you need help determining which form to complete, consult a tax professional.