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  • nessfromsa Level 1 (0 points)

    Hi MichiHenning,

    I am also from Australia,

    thanks for all your detailed answers, I was wondering if you at any stage during your application (specifically when in itunes connect filling in the tax forms) did you fill in the W8-BEN form?


    This is accessible in: Contracts, Tax and banking section. Under tax>  US Tax forms  and after answering "yes" to the following question:


    Do you have any U.S. Business Activities?


    In general, you have U.S. Business Activities if you have employees in the United States, or own, lease or control equipment or other assets in the United States that you use to derive revenue from the iBookstore.


    It is here I get confused and apple states you WILL not be able to resubmit or change this. Presently I do not derive revenue so feel the need to answer  "no" and go no further.



    But everywhere I read people are filling in th W8-BEN form, leading to my confusion.


    Sorry I meant the:

    Form W-8ECI: Certificate of Foreign Person's Claim That Income Is Effectively Connected With the Conduct of a Trade orBusiness in the United States


    Also are you required to file a U.S. income tax return (whether an individual return or corporate return) with respect to the income you earn from the iBookstore?


    Thanks Michi.

  • jlc1978 Level 1 (10 points)

    Also are you required to file a U.S. income tax return (whether an individual return or corporate return) with respect to the income you earn from the iBookstore?


    You would need to ask a tax professional for the answer; but in general the answer would be yes since you are earning income in the US. Your assests would be the iBooks and any revenue is subject to US tax law requirements; which can get quite complicated and why I recommend contacting a atx professional famialr with US and Australian tax laws.

  • julicalder Level 1 (0 points)

    Can a US Citizen explain us which type of taxes they pay by selling content on iBookstore?

    We all understand 30% comisson for Apple, but is not really clear the 30% withold for taxes.


    As far as I've seen/read, if a non US-Citizen gets a withhold of 30% after Apple's comission i am interested in knowing if a US Citizen goes by the same30 % apllied to the price.


    This is mainly to be able to compare profits&loss of selling via Apple as a US Citizen and a non US Citizen.


    And if possible, indicate if a Person (in US) will have a withhold of  30% (or whatever the % is) like a small Company or if %'s are different between people and a small company.


    Thanks a lot



  • Tom Gewecke Level 9 (76,435 points)

    julicalder wrote:


    As far as I've seen/read, if a non US-Citizen gets a withhold of 30% after Apple's comission i am interested in knowing if a US Citizen goes by the same30 % apllied to the price.



  • vinnyvg Level 4 (1,865 points)

    To clear one point,  Apple and the IRS deal in the gross amount.

    Apple takes 30% of whatever price you apply to your product. 

    The tax office calculate any tax due on the gross amount.


    Comissions ( taken / paid) to Apple may qualify to be claimed back as a cost of sales ( an expence incurred )

    This will apply to your tax return in your own country. If you are a small business, you should have a tax advisor who already deals with your personal and "business" tax accounts.

    If you are like most, employed  and paid salary and making  books as a paying  hobby/pastime then you  should be  declaring any additional income on your tax return and this is where you can claim back any costs incurred.


    IF for example, you just purchased a new Apple mac to enable you to use iBooks Author??   Claim it as an expense.  Likewise anything  linked to making eBooks which are offered for sale. 


    The tax office will decide if your claim is valid  or not according to their rules.


    Any refund is made via your tax status or whatever your countries methods are. The UK tend to adjust tax codes so less is paid the  following year, I think the  USA has "Clean Sheet" approach which finalises  each  year end with no carry over.


    This brings in any amounts withheld by Apple to cover tax obligations in USA.  Include that on your tax return and depending on if your country has any reciprical agreements its all thrown in your  tax pot and sorted out!


    I am no expert on  tax laws in any country and I am sure I have read here somewhere that all these tax issues come to little unless you are making big bucks on sales. BUT, possible eBook income will be added to your salary and thats what your tax office will deal with.


    I still dont  fully understand why Apple  have this finniky procedure for none U.S.  "authors".


    Cafepress and Zazzle (  P.O.D. websites offerring T Shirts, iPad covers etc with  images printed on) both in the USA., -   CP basically  require a declaration filling out online and Zazzle,  require a W8-BEN filling in, signed, scanned and emailed. To none US , they pay whatever commisions are due from sales on their sites and tax is left to  the recipient to sort out in  their own countries tax system.


    Maybe there is a difference between commissions paid out and direct income from sales in US tax law.


    The thing is.. if you make books to make money and you want to be involved with Apple, get on their  bus and deal with whatever they ask for.   If thats not  accepatble.. go for vanity sales and  push your books free.


    Finally,  ithink all this is another Apple "let them find the informations and deal with it" situation.

    Maybe Apple should understand that not everybody is born with a brain that works like 100 imacs linked together or reads and speaks perfect English and maybe if they simply  had a step by step checklist procedure - life  and forum activity would be less hectic.

  • The Cradle Mob Level 1 (0 points)

    Its a hard one. Example, we wrote a non-fiction book about an old murder case in the state we live in. Interest for this book, thus sales, are limited to this state. We looked into doing an online version to get people off our backs. No sales would be made in the USA, and given all the applicable tax/income implications here, and given that companies such as Apple infer, through specific country websites/administration, you would think that logically you would only be subject to Australian Tax law. The idea of giving the IRS money for absolutely nothing is something we refuse to do. We looked at ebook software, because authors must have DRM, (digital rights management), unless you are giving your book away is an easily pirated .pdf format. There is free software to do this, such as Adobe Digital Editions, or programs like Calibre. Make sure your software includes DRM. For someone like us, we would register the book with the federal arts department under Lending Rights. It isnt much, but you get some money when your book is borrowed from a library, as does your publisher. You can also apply for Educational Lending Rights, something we are doing as this old murder story is used in social science as a topic. The problem is, they havent quite caught up with ebooks yet. There are online discussion papers, but I have yet to see borrowings required/royalty paid figures. You can, however, register your work for this in the interim.


    Note: If you sell your book through ibooks or amazon, their book file extensions are incompatible with all australian libraries. This is aside from the sole rights they hold you to.


    Final note. All the above comments apply to Australia only.

  • eliseman Level 1 (0 points)

    I followed this thread today and it was a great help. Thanks to all previous contributors.


    I rang the IRS today (12 noon UK time, 7 am local time), and got my EIN within 10 minutes.

  • wawachi Level 1 (0 points)

    Thank you, buildyo23, so much. I had been waiting for a month, and one phone call to the US and 5 minutes later I had my EIN!

  • ViviZ Level 1 (0 points)

    Finally I have got my ITIN. Does it work in iBookstore? Or have to have EIN? Or you can put in either EIN or ITIN?


    If you have already published books in iBookstore, you know it. Please share the info.


    Thank you!



  • nessfromsa Level 1 (0 points)

    Hi Viv,


    I am in Australia, I obtained an EIN and that is what I used to publish my books to the iBookstore. I do not know if you can use the ITIN, you could always give it a go and see if it works.



  • ViviZ Level 1 (0 points)

    Hi Ness,


    Thank you!

    I put this question in another post. I was told it would work. I will have a try. Viv

  • DTAdelaide Level 1 (0 points)

    Hi Cradle Mob


    The iBooks Author version of the book is indeed protected as Apple Intellectual Property (IP) but the content, story, words, images etc are all yours. Only the proprietary software output is theirs. Any other output (pdf, epub etc) is excluded from Apple's IP agreement. If you read it carefully you'll see that they have not at any time stated that the content is theirs, just the iBook version thereof, and that only to prevent you using their format in other stores. You can publish the ibook, and also supply any other version (a simple epub) through any other channels you like. The only differences will be the file extension, the amount of interactivity you can add.


    Only iBooks Author allows one to add the level of interactivity that some of us want to use in books. Other software is great too (Adobe's InDesign plugin, Magplus etc) but they do not output to the bookstore, which is an issue.


    The only tax you will pay is what you owe to the ATO, the reciprocal agreement between Aus and USA prevents you paying double taxes, certainly you would not pay 30% to the IRS.


    I hope this helps

  • vinnyvg Level 4 (1,865 points)

    Once again I have gone through  this thread and on the face of it.. getting a EIN form is not a problem.. its the messing about with  different countries tax systems - which I suppose if one is selling mega amounts or product is worthwhile.

    I have an added problem - I am resident in Australia - but my Apple account and banking is in the UK.

    I have an aussie tax file number and a UK tax file account! 

    I am sure  that a few will want to repy with  the  solutions.. but to be honest, moving from the UK  and closing down a Limited Company and the aggravation with  the UK tax and VAT offices .. for that and  then our own (wife also a director)  which although was  mostly done  through an accountant - was gruelling! 

    This is the short version!!


    I am forming the opinion that an easier option is to pass the iBA books to a person to deal with Apple and tax matters on a share of profits basis. Or, does doing that still involve dealing teh same tax situation I appear to have?
    Has anybody  had any experience of this?  I will be  interested for any info available.

  • sunshiner Level 1 (25 points)

    G'day Vinny


    I'm in Noosa, Queensland. I have just recently received my first (quarterly, I think) payment from Apple as a result of sales of my book created with iBA. The payment was broadly in accord with what I expected, but I still have some details to work out. It's the second iBA book I've created, the first being done for a paying client, who opened an account with Apple and deals directly with them.


    My book


    So far I've sold to Australia, US, France, UK but it is available in 32 countries.


    I have a very small limited company which is the entity which deals with Apple and had some difficulty in jumping through the necessary hoops to set up the whole process but eventually they worked. The EIN was easy, just a quick phone call, then a one month wait for the entry to appear in the IRS database. I also had to prove to Apple's satisfaction that my company was registered for GST.


    I consulted my accountant before embarking on the process and he recommended using the company as the entity for publishing the book. The accountant will deal with any matters with the IRS, I hope. So far I have received no simple document detailing precisely how my payment was derived but will wait and see what other info is forthcoming.


    It is certainly possible to load your book up using another entity's Apple account, but I'm not sure how YOU would keep track of sales as the other entity would receive all of the reports and income.


    May I suggest that you consider setting up an Australian company and bank account. That's one way that definitely works. And give me a call if you wish, in Queensland, 54748522.



  • GoGoByronBay Level 1 (0 points)

    Hi trilogy1000,

    I am also in Australia and have just stumbled into this problem. All I want to do is sell my book in the iTunes store. Can you help me fastrack ?