We've created this Forum Thread with some workarounds and advice to assist you in publishing you ebook.
I'm from the Philippines and got the withheld tax mail recently.
For all the foreign authrors out there, how did you pay your taxes? I am quite confused by this as here in the Ph our taxes are automatically deducted from our total earnings.
Second, if I order the book (being from Philippines using my personal Lulu) but have it shipped to someone in the US, will it still be taxable? I've read conflicting comments from people on here. Some say if you "outsource" by purchasing the book yourself but sending it to your US customer, you will not pay US tax as your account is not in USA.