Radoslav

Q: US TAX ID - The Big Dilemma

Well... I`m from Bulgaria and want to publish books with Ibooks Author. I read everything for IRS and ITIN ect, contact with four US tax consulting companies and US embassy here, But I need to fly to London or Paris to local office of IRS where accredited notary make a copy of my ID card...

 

I just want to sell e-book in Apple store, I no want to start a company or business in US or something...

 

I know how for 90% from of you that's is not a problem because you a US citizens, but for international authors this is nightmare :|

 

Once again, please not delete my post I know for other posts here for US TAX ID, but if Anyone can give ANY suggestion for easy way to get this Tax ID and publish book please say it. Thanks.

 

p.s. I perfectly know this is the law, but the procedure is so complicated and very close to impossible...

Posted on Jan 27, 2012 12:05 PM

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Q: US TAX ID - The Big Dilemma

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  • by PeterBreis0807,

    PeterBreis0807 PeterBreis0807 Feb 21, 2014 6:22 PM in response to PeterBreis0807
    Level 8 (35,693 points)
    Mac OS X
    Feb 21, 2014 6:22 PM in response to PeterBreis0807

    BTW Apple is not paying tax in The States on what it is earning.

     

    But asking us to even when we have not earnt the money there.

     

    Peter

  • by vinnyvg,

    vinnyvg vinnyvg Feb 21, 2014 8:20 PM in response to PeterBreis0807
    Level 4 (1,880 points)
    Desktops
    Feb 21, 2014 8:20 PM in response to PeterBreis0807

    So for the piddly amount of return on the massive amount of work:  

    You set your  price not Apple

     

    1. Start an entirely irrelevant Tax Return in a foreign country*  

     

    Go to work for New York Fire Department,  you get paid, you get taxed -  get back to Oz in the middle of a tax year.. you have to declare your income "from all sources" on your Au tax return... BUT you dont get taxed on it again....

     

    2. Be taxed in the hope of getting it back later

     

    DO you have an ABN?.. any body can apply - but  you declare nothing if you earn nothing... earn $1  and you need to declare it! and you every  year file an  ABN related tax entry.

    Putting a book (s)  in the store is hoping it sells well and earns you money- its not an obligation.

     

    3. Claim Apple's cut as a cost from the gross amount taxed.

     

    Dont  know aussie rules, but  years ago,  I  could claim  "cost of  sales" on  anything related to promoting and making sales. Its tax deductable.  I am sure it applies in every country.

     

    4. Pay for a foreign tax expert and lawyer to work this all out for you

     

    Pay an Aussie tax expert  if you are in aussie - which  is where you pay your tax, he/she/they will  work out overseas earning/tax and make the adjustments. You dont pay twice.

     

    5. Pay tax again in Australia  

     

    You dont pay twice.   
    Whatever tax you are due to pay in your normal employmeny needs to be paid.

      if - for example you are a carpenter and along comes a mate  just bought a shop and want  some  new fixtures and  fittings and pays you $5ooo..... do you  declare it or hope you dont  get caught.... cos your mate will claim it back as an expence to offset his tax bill!

    If you create a new  book about Flappy Birds and it earns you $50,000 are you worried about 20% tax?   You only pay it -  if you made it.

     

    * Apple has the gall to charge us GST and local taxes here in Australia to justify its higher "costs", then tells the Australian Tax Office that the transaction did not take place here in Australia, but in Singapore, therefore Apple should not pay Australian tax.

     

    Apple Australia is a different  branch of Apple to the USA branches  -   so like any Aussie business from whom you  buy... the AU law says you pay 10% GST - not  Apple. 

    Item shipped into AU  incur import tax, not Apples fault.. AU law.

     

    How Apple runs its tax obligations with AU  - I have no knowledge, but Google and others are the same - they have smart accountants to sort it out.........

     

    So........

     

    Everything is quite simple really,    before you  join anything you get to know the rules, requirments and obligations.
    Apple does  not send out  "Press Gangs" to leap on the unwary and make them buy products from Apple or download free software and make books in the hope  you will will make millions ( less 30% ), it your choice and yours alone.

    What you  dont like, dont  get involved with....

     


  • by vinnyvg,

    vinnyvg vinnyvg Feb 21, 2014 8:26 PM in response to PeterBreis0807
    Level 4 (1,880 points)
    Desktops
    Feb 21, 2014 8:26 PM in response to PeterBreis0807

    BTW Apple is not paying tax in The States on what it is earning.

     

    But asking us to even when we have not earnt the money there.

     

    Thats something different and out of "our" control.

     

    A few years ago I was in the USA  and a guy  fell of the Empire State Building... as he was falling people in the  offices  on each passing floor  could him smiling and  his lips moving as he passed the  fifth floor, a lip reader was asked if she could  see what he was saying  that  he looked relaxed.....

    She said... " so  far, so good....   the time to worry is just before the ground floor....."

     

    Worry about   what you have to and let Apple do its own stuff - which you have to admit the government allow o rthe would not be alowed to trade in OZ.

  • by PeterBreis0807,

    PeterBreis0807 PeterBreis0807 Feb 21, 2014 9:05 PM in response to vinnyvg
    Level 8 (35,693 points)
    Mac OS X
    Feb 21, 2014 9:05 PM in response to vinnyvg

    Vinny

     

    You are making the massive assumption that the money is being earnt in the States when the Apple Stores are everywhere. Why not a German, UK, Italian, Hong Kong tax file number?

     

    And I may be setting my own price but I am under no misapprehension that this is a gold mine. Far from it. Any money being made is by all the middle men. Principally Apple.

     

    And also I am not objecting to any of the other points other than the compulsion to have a US TFN and have to claim back my tax in US$ from the Internal Revenue.

     

    Every single cut diminishes the already inadequate returns.

     

    It is a lottery that pays out badly with you gambling your labor and intellectual effort and not even knowing how much the deductions are, of which there are many.

     

    In Australia back in The Depression there used to be what was called the Hungry Mile along the wharves. Men used to line up in the desperate hope that they would get picked for a job, and once picked that they might, eventually, get paid.

     

    The Hungry Mile has been put On-line so you don't even see the other starving faces and you live with the illusion that it is only you that's doing it tough.

     

    At least The Hunger Games was a televised event. Everybody can see what happens to the losers.

     

    Peter

  • by vinnyvg,

    vinnyvg vinnyvg Feb 21, 2014 11:59 PM in response to PeterBreis0807
    Level 4 (1,880 points)
    Desktops
    Feb 21, 2014 11:59 PM in response to PeterBreis0807

    I use the  USA  simply because of the EIN  requirement, as I said, I am no taxation expert.

    If you need specific information related to yourself,...contact Apple AU and ask for an explanation.

    Apple insist  on the EIN US tax file  number for a reason....ie to cover their side of tbd tax situation.

     

    A number of US based print on demand ( tee shirts, mugs caps etc, ). which allow infividuals  to open "stores" to sell their designs on the site owners products...have sent out notices that  the W8-BEN  is no lo ger being accepted as a tax exemption abd tbst tax at the appropriate rate may be deducted from sales commissions. Again, the users are worldwide.

     

    You again mention "inadequate" returns....  its you who sets the selling price....if you want more....reset tbe price higher.

     

    You do not claim back any taxes taken out by Apple, you simply state the amount taken on your tax return and its sorted by the tax offices. Which is not really different to declaring the income and having tax added to your bill. aif you did that. you will then become embroiled in gathering the focumentation.

     

    You also miss out a nice little earner...logically, if you use tools to enable your work, they can be tax deductable....so claim the expenses of buying a suitable Apple computer and its accessories.

  • by lizburkinshaw,

    lizburkinshaw lizburkinshaw Jun 26, 2014 2:16 PM in response to Radoslav
    Level 1 (0 points)
    Jun 26, 2014 2:16 PM in response to Radoslav

    Hey there, I didn't need an american tax number for iBooks publishing - I am a UK resident. I don't actually know why, or whether it work again for others, but when I got to the page where it asked me for the US tax number I cancelled the request and shut down Safari. When I next went in to investigate what I needed it clicked straight through to a page where I could enter UK bank details, giving me entirely different options to before. So - it can be done, just not sure how!

  • by vinnyvg,

    vinnyvg vinnyvg Jun 26, 2014 4:37 PM in response to lizburkinshaw
    Level 4 (1,880 points)
    Desktops
    Jun 26, 2014 4:37 PM in response to lizburkinshaw

    You do not say if you are opening a Free Book account or a Paid Book account.   You do not need  ( or did not when I  opened  it) an EIN for a free book... no  payments involved!

     

    For a Paid Book account, - Apple require a US tax file number - EIN.
    To my understanding, you have have simply ignored a required entry and  moved on.

     

    In the contract process Apple include the  requirements specific to UK, Canada and Australia.  i.e. Australians are required to open and submit,  an ABN - Australian Business Number - its required by the Aussie government for tax purposes.

     

    A UK  applicant, will also need an IBAN number from their bank.   Its an anti money laundering agreement which the US  as with various other countries.

     

    Unless Apple and the US,  IRS  have changed the rules... which I doubt - Apple need  your  tax information in order to deal with the tax due on your  sales receipts and their payments to a bank outside the US.

     

    Have you submitted the paid book contract application?  Until you do - we will not know if your way - without an EIN is valid.

     

    This is an extract from the paid book account  contract agreement ......  you need to read the whole relevant sections...

     

    Apple will not remit those amounts to Publisher, but will hold those

    amounts in trust for Publisher, until such time as Publisher has provided Apple

    with the required tax documentation. Upon receipt of all required tax documents

    from Publisher, Apple will remit to Publisher any amounts held in trust by Apple

    for Publisher, without interest, under this Section 5(j) in accordance with the

    terms of the Agreement.

  • by lizburkinshaw,

    lizburkinshaw lizburkinshaw Jun 26, 2014 11:18 PM in response to vinnyvg
    Level 1 (0 points)
    Jun 26, 2014 11:18 PM in response to vinnyvg

    Hi Vinnyvg,

    it is is a paid account I opened and I entered my IBAN number. Fingers crossed someone wants to buy my book now

    liz

  • by vinnyvg,

    vinnyvg vinnyvg Jun 27, 2014 5:19 PM in response to lizburkinshaw
    Level 4 (1,880 points)
    Desktops
    Jun 27, 2014 5:19 PM in response to lizburkinshaw

    Hi Liz,

     

    Just had an  email  from Apple... which everybody with a free books account  may have also....  its about upgrading to a Paid book account among other things...  an extract:-

     

    "To apply as a company, an organization, or a U.S. individual, you must also provide a U.S. Tax ID (for example, a Social Security Number for individuals or an EIN for businesses) on the Paid Books Agreement Information page. After submitting the request form, you will be able to download the Paid Books Agreement, but you can’t accept the agreement until your U.S. Tax ID has been verified."


    The above does not say that none USA applicants need the EIN Tax file number.  I have  other  account with two  "Print on demand" sites... my pictures on Mugs caps etc,.  and  both  have in the past few months required me ( et al )  to upgrade W8-BEN  numbers to EIN numbers... so it  could be that the above from Apple is confusing for we none US applicants!


    My understanding was because we are none US, the  no social security number - so the only option was the  "business" EIN - which stands fro Employer Identification Number.



  • by lizburkinshaw,

    lizburkinshaw lizburkinshaw Jul 16, 2014 2:47 PM in response to Radoslav
    Level 1 (0 points)
    Jul 16, 2014 2:47 PM in response to Radoslav

    UK residents DO NOT need an EIN - confirmed by the Apple Legal team. See below. Hope this helps everyone! All i needed was my IBAN...


    Dear Team,

     

    I'm not sure how, but when setting up my tax details on iTunes Connect i was faced with a page on which to enter my UK tax details. At the time i did not have an EIN, but now that i do i can't enter it. Please can this be entered onto my account for me?


    Liz


    Hi,

    You do not need an EIN. Your contract is in effect, and you are ready to upload and sell books.

    Please let me know if you have any further questions.

     

     

    Best regards,

    The iTunes Store Legal Team

    1 Infinite Loop, MS: 36-4ISM/ Cupertino, CA 95014, USA

    iBookStoreContracts@apple.com / Fax: 408-974-9105


     

    Thank you. I uploaded my first book three weeks ago and it still isn't in the stores. There is lots of confusing info on your discussion sites and even the itunes connect page says everyone must have an EIN for a paid books account. I wondered whether my first book is taking so long to publish because I had filled something in wrong?

     

    Thank you

    Liz

     

    Hi,

    Nothing is wrong, we just changed our policy!  So when you are an individual, NOT in the United States, you do not need an EIN.

     

    If you want to check up on the status of your book approval process, please email ibooks@apple.com.

     

    Please let me know if you have any further contract questions.

    Best regards,

    The iTunes Store Legal Team

    1 Infinite Loop, MS: 36-4ISM/ Cupertino, CA 95014, USA

     

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