US TAX ID - The Big Dilemma

If you don't pay taxes in the US, you don't need a US tax id.... Taxes for you are local to your region.

You need a US TAX and take a look at the webpage of the IRS

Note: International applicants must call (267) 941-1099 (Not a toll-free number).

just call and wait (a lot) and answer the question like name, address, etc..

it is very easy indeed

I'm in Australia so in the same boat. I have the forms here but one section asks for a letter from your employee stating why I need the Tax ID. In this instance that would be Apple I assume. I'm going to try to get to the US Consulate through the week and get it sorted - it's looking like it's going to be a hassle.

You should simply send a letter from yourself as a self-employed entity. The IRS is actually quite good at answering questions - I'd send an email, explain what you are trying to do and see what they say. As a side note, you'll wind up havng to fill out US tax forms, do quarterly witholding, etc., as a result.

I'd chack with an Aussie tax advisor who is familar with US laws to see what you are getting into.

FWIW Smashwords has a reasonably clear explanation for their authors:

http://www.smashwords.com/about/supportfaq#ITIN

Yeah, I'm not sure whether I'm getting more or less confused. The Smashwords site says "When you apply for an ITIN or EIN, the IRS requires you also provide a hand-signed letter from Smashwords, written on Smashwords letterhead, stating your reason for requesting an ITIN."

Cetainly the impression I got was that the letter had to be by the payor (in this case Apple) but hopefully the Consulate or IRS can clarify. I wonder if Apple will, like Smashwords, be offering the letter.

Trilogy1000

I doubt Apple would offer the letter - the ITIN is used to identify individuals, for tax purposes, who are not eligible for a social security number. An EIN is used by a company to identify itself for tax purposes, and does not require a letter. You can apply for an EIN online at IRS.GOV and get one instantly. Per thr IRS, one reason to get an EIN is if you:

Are a foreign person and need an EIN to comply with IRS withholding regulations (from IRS.GOV)

I'd seek competent tax advice from someone, in your country, that can explain the ins and outs. If you get an EIN the US IRS will expect annual tax returns, even if you are not a US citizen. They will tax any income from the sales of your book, even as a non-US citizien not in the US selling a book to someone outside of the US, but how and how much depends on a lot of things, which is why you really need to get some good advice from a real tax professional.

To get an EIN you need an ITIN or SIN. So you're stuck getting an ITIN.

This is getting ridiculous. At least Smashwords gives authors the choice: don't want to get involved with the IRS? Just pay the 30% withholding tax and try to avoid the double taxation in your own country. As I understand it, Apple does not give us that option.

AodhFFXI, this is not true. You do not need an SSN or ITIN to apply for an EIN. If you are applying for an EIN for withholding regulations, providing either is optional.

I also don't believe the IRS expect annual tax returns if you have an EIN, although I have yet to find hard evidence to corroborate this.

Here we are.

http://www.irs.gov/pub/irs-pdf/i1040gi.pdf

Scroll to page 8.

You only need to file if you (generally speaking) earn over $9,500.

Edit- Actually, that's for individuals, not for businesses. Hmmm...

Can't seem to find anything now, but I'm pretty sure you don't need to file if you have an EIN because you applied for that EIN to comply with withholding regulations. Thus, you have no employees to file for, and I think most of us here are unlikely to earn over that $9,500.

Again, get competent tax advice from a tax expert who understands US a well as local tax laws. The last thing you want to do is run afoul of the IRS, even by accident. Relying on well meaning responses form support boards can point you in a direction but should not be used to make a final decsion.