Tax and Withholding FAQ
Disclaimer: Lulu employees cannot provide tax advice. We recommend you carefully research tax requirements for your locale and consult a tax professional.
Why do some of my books have withholding, while others don’t?
Only books with Lulu-owned ISBNs are subject to withholding. If you purchased and registered your own ISBN, your earnings are Other Revenue, not Royalties, and are not subject to US income tax withholding.
Why are only part of my creator revenues being withheld?
Only the subset of creator revenues which meet the true and legal definition of a royalty are subject to withholding.
Why do I have to enter my tax ID number information?
Your royalty payments are US taxable income. Lulu must report all earnings to the US Internal Revenue Service.
How do I provide my individual tax ID number (ITIN) or employer ID number (EIN)?
Note that this method is only applicable for US residents and non-US taxpayers with US tax id numbers.. Non-US residents (foreigners) can submit a non-US tax id number with a valid W-8BEN. To enter your US Tax ID Number:
- Log into your Lulu.com account
- Go to My Projects > Payment Contacts
- Enter your Tax ID Number.
- Click Save Payee Information
Can I enter a corporate tax ID number instead of a personal one?
You may use a corporate name and tax identification number when you provide your remittance address. We report your earnings under the business number and name instead of your personal name and tax number. If you do not file a business tax return, please use your personal name and tax identification number.
What is the withholding rate for foreign entities?
With a valid W-8BEN form on file with Lulu, your withholding rate is set at the percentage defined in the tax treaty between the U.S. and your Resident Country as appropriate for royalties. These rates vary by country. Without a valid W-8BEN form on file, your withholding rate is 30%.
What about treaty benefits?
To better understand tax treaty rules and requirements, please review this Tax Treaty Overview. If you have a complete and valid W-8BEN on file at Lulu with a valid Individual Taxpayer Identification Number (ITIN) or an Employment Identification Number (EIN) then you can claim Tax Treaty Benefits. See this example W-8BEN for further information.