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Trusted Creator
Keith Dixon
Posts: 1,668
Registered: 02-11-2010

Re: ITIN - documents and the Apostille system

Quote:

Until you hand in the forms all monies are withheld


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Not true, Kevin. Just thirty percent of any royalty payment to you is withheld if you haven't provided the W8 form, and if you're a UK citizen - I've got the statements from Lulu to prove it.

And employers ARE concerned/interested about the tax status of the people they transact with - it is their business. For example, in the UK if you sub-contract to a company to provide them services via an intermediary (eg another contractor) then there is the possibility you might be caught under the IR35 rule. In that case, the income paid to the intermediary - to pay you - might be treated as income and the intermediary taxed accordingly. Naturally they don't like that. I was obliged to avoid this situation myself by becoming a limited company at the request of a company I worked for. As it happened, it suited me then so I didn't object.

You might say this is a different situation - and it is - but the point is that companies someties have to protect themselves in ways that we might not like, but nonetheless are necessary and legal. As UVSAR says, Lulu are not doing this because they like the idea, but because they have to.

I now await, as always, the multi-coloured rebuttal. I should learn ...
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Honored Creator
kevinlomas
Posts: 8,414
Registered: 02-11-2010

Re: ITIN - documents and the Apostille system

"UVSAR" wrote:

Tax status is based on the location of the customer, or the branch of LSI used to print it, as the help section explains. If you sell direct via the website there is no withholding as the sale isn't a taxable royalty. If you sell a distro book printed in the UK or Spain to a UK customer there is no withholding. None. Nada. Zip. You should know that from your revenue reports, assuming you've sold some that way.

Sorry, it may say that somewhere, but I know what lulu have told me and I know what happens. Money goes through lulu, lulu are USA. Full Stop.

Yes, Lulu want a W8-BEN even if you're not claiming treaty rights, as they need a legal statement from you about who you are and that you've agreed to the withholding.

The W8-BEN is not about witholding, it is to stop it.

That's standard practice for any US company dealing with royalty payments to non-US residents, just as in the UK every employer demands to see your national insurance number. I've sent in about 20 of them over the years.

But I do not work for lulu (sigh) no UK person or company asks a self-employed person doing work for them (and we are not even doing work for lulu) for their NI or Tax number. (Unless you are in the building industry then they ask you for a 'card')

..and as to Lulu having a "UK website" - it says ".com" at the end. It's a US website with a few pages aimed at UK readers. Look up the IP address.

I really do not know why we are arguing. It is simple for lulu to set up 'mirror' sites anywhere. Especially when they already have a registered office in other countries. Are you objecting to such?


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Frequent Editor
uvsar
Posts: 52
Registered: 02-11-2010

Re: ITIN - documents and the Apostille system

We're not arguing. I'm just waiting for you to agree with us.

You seem to think that Lulu cares about your tax bill. Why should it? Suppose they invest time and resources into making the system work specially for UK authors in PBL distribution (a microscopic fraction of their author base) - Lulu gains from that precisely nothing. They also stir up resentment from the thousands of authors in other non-US countries who have PBL, and who now complain they're being treated unfairly. You really want to start a war over a few dollars? Submit your form like everyone else.
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Honored Creator
kevinlomas
Posts: 8,414
Registered: 02-11-2010

Re: ITIN - documents and the Apostille system

"UVSAR" wrote:

We're not arguing. I'm just waiting for you to agree with us.

What if I don't will you invade me? :lol:

You seem to think that Lulu cares about your tax bill. Why should it?

No one says it should, but I do not care about lulu's or the USA's either. Why should I? Such things could be classed as a service to their subscribers though ...

Suppose they invest time and resources into making the system work

And why not? It's not rocket science.

specially for UK authors in PBL distribution (a microscopic fraction of their author base) - Lulu gains from that precisely nothing.

Lulu seem to have two registered addresses, 1 in the USA and 1 in the UK. They must have it for some reason.
And you have the exact figures of where all of lulu's subscribers reside? Can you see the UK section of lulu's site even? It is different and they keep offering more and more services to UL subscibers. Not so "microscopic" then. BTW. The UK is part of the EU with far more residents than the USA and many worldwide companies big and small have ofiices here. London is the centre of world trade after all :lol:

They also stir up resentment from the thousands of authors in other non-US countries who have PBL,

Why do they not do if them as well then? In fact the EU has mostly the same tax laws in all its many countries and so do most of the rest of the world. It's just the USA that's paranoid about people not paying.

and who now complain they're being treated unfairly.

No need to if the USA admit that we are nowt to do with the US tax system.

You really want to start a war over a few dollars? Submit your form like everyone else.

It would not amaze me that all the worldwide lulu subscribers added together far out number the USA ones. So how many total pounds would you think it would add up to?

:smileyhappy:


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Member
HannahChacko
Posts: 5
Registered: 02-11-2010

Re: ITIN - documents and the Apostille system

Submit the form? I'd love to... Give me a comprehensive way to fill in the W7.... "Filling in the W7 for Dummies"

Its kinda strange.. I am filling in US tax forms before I have filled in a single tax for for the UK....
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Honored Creator
kevinlomas
Posts: 8,414
Registered: 02-11-2010

Re: ITIN - documents and the Apostille system

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Member
HannahChacko
Posts: 5
Registered: 02-11-2010

Re: ITIN - documents and the Apostille system

It's not funny... I'm 17, I have no idea how to fill in the forms... W8-BEN is self-explanatory.... but the W7.... how? What would I come under...

Apparently should have had a tax form just before I turned 16... but if I did it never showed up. That's IR for ya. Hopeless ^^

Plus I can't really get to the US embassy... last time I went to London I got hopelessly lost and can't afford Edinburgh or wherever up north the other one is... to be honest, struggle to afford London right now...
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Honored Creator
kevinlomas
Posts: 8,414
Registered: 02-11-2010

Re: ITIN - documents and the Apostille system

Here are some simplified instructions that may help you

Form W-7 Simplified Instructions

Check the appropriate boxes for your situation:

Honoraria, Consultants, Etc: Check Box “A” and Box “H”

To the right of box H enter “Exception 2(a) Honoraria Payment”

Enter treaty county and treaty article number

Scholarships with treaty: Check Box “F” and Box “H”

To the right of box H enter “Exception 2(b) Scholarship Income”

Enter treaty county and treaty article number

Scholarships with no treaty: Check Box “F” and Box “H”

To the right of box H enter “Exception 2(c) Scholarship Income”

Note: Please type or print clearly.

1a: Enter your legal name. Must match passport & visa documentation

2. Enter mailing address only if different from your foreign address. ITIN will be sent to this
address.

3. Foreign address: Your home address in your home country. If #2 is blank, ITIN will be sent to
this address. If you have no foreign address, enter the country information only.

4. Enter in Month – Day – Year format. Country of Birth – cannot be US.

5. Select gender.

6a. Enter country of citizenship. Do not abbreviate. If you have dual citizenship, enter both.

6b. Enter foreign tax ID number if any, (e.g. Canadian Social Insurance Number)

6c. Enter visa type, number, and expiration date e.g. J-1 #12345678 12/31/09

6d. Check the appropriate box for documents you are showing; enter all numbers as indicated. “Dateof entry” is for current visit.

6e If you ever had an ITIN or EIN, check “yes” and complete 6f. Otherwise, check “no” and skip 6f.

6g. Enter “University attending , and your expected length of stay
(e.g. “6 days” or “4 years”).

Sign and date.



http://www.usembassy.org.uk/
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Member
HannahChacko
Posts: 5
Registered: 02-11-2010

Re: ITIN - documents and the Apostille system

thanks.. kinda helped
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Occasional Visitor
Petra_Falk
Posts: 2
Registered: 02-11-2010

Re: ITIN - documents and the Apostille system

"Kevin Lomas" wrote:


See above* However, perhaps you misunderstand me? Until you hand in the forms all monies are withheld, and it is really no business of lulu or the USA how and if a UK citizen pays their tax or not. Feel free to withold the tax part of it, but not the whole. I object on principle. :lol:


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This is a storm in a teacup - because it's simply not correct. Lulu will withhold 30% tax on **US SALES ONLY** until you have filed the necessary paperwork. Only the 30% and ONLY on US Sales.

It's how I work out which of my lulu Sales came from the US - that's the ones that had the 30% deducted, the rest are paid in full. That's the 70% of the US Sales and the whole revenue from the rest of the world without any deduction.
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