Individual Taxpayer Identfcaton Number (ITIN) for US

[darmstadt]

Just been informed I should get an ITIN (Individual Taxpayer Identfcaton Number) for invoicing clients in the USA. Anyone been through this and know how to go about it? It may be only for those states where certain taxes apply and it might not apply to UK taxpayers but apparently does for those paying tax in Germany (new tax laws)

[northernladuk]

Obtaining an ITIN from Abroad ??

http://london.usembassy.gov/irs/irsitin.html??

Some people who have been through it explaining the process

http://www.andrewlownie.co.uk/2013/1...rom-the-us-irs

http://catherineryanhoward.com/2011/...ga-in-3-parts/

[darmstadt]

Obtaining an ITIN from Abroad ??

Individual Taxpayer Identification Number | Embassy of the United States

Some people who have been through it explaining the process

Andrew Lownie Literary Agency | A guide to obtaining an American ITIN from the US IRS

Applying for a US Individual Tax Identification Number (ITIN): A Saga in 3 Parts | Catherine, Caffeinated

Cheers, managed to find something on the IRS website and got form W-7 (the application form.) Now to ascertain if I really need it...

[jamesbrown]

Just been informed I should get an ITIN (Individual Taxpayer Identfcaton Number) for invoicing clients in the USA. Anyone been through this and know how to go about it? It may be only for those states where certain taxes apply and it might not apply to UK taxpayers but apparently does for those paying tax in Germany (new tax laws)

In the past, it hasn't been necessary to complete any IRS forms for services performed by a foreign entity in a foreign country because the company is not a US person and the income is treated as foreign-source income. Reporting requirements only related to a "US person" (includes companies) and/or "US-source income". However, you'll need to get advice in light of FATCA. For example, see here:

International Tax Blog: Payments to Foreign Contractor Entities: Form W-8BEN-E

You need to be very careful here, as there's an enormous amount of misinformation about what is required, including among US companies (and very likely your client) and even tax specialists that are not trained on foreign compliance. The fact that you're being asked for an ITIN suggests that you're being led down a path that you should not be going. Seek professional advice, because your client may not listen to you directly, but they should listen to a suitably qualified professional. Also, remember that there are two different things here: you and YourCo. Neither of you are likely to be a US person or to have US-source income.

[Taita]

Just been informed I should get an ITIN (Individual Taxpayer Identfcaton Number) for invoicing clients in the USA. Anyone been through this and know how to go about it? It may be only for those states where certain taxes apply and it might not apply to UK taxpayers but apparently does for those paying tax in Germany (new tax laws)

As a UK taxpayer, you will have a unique reference number (HMRC will confirm subject to ID checks) so you should use that.

[darmstadt]

As a UK taxpayer, you will have a unique reference number (HMRC will confirm subject to ID checks) so you should use that.

I'm not a UK taxpayer although this would affect them too. After further investigation we've discovered that I don't need one nor an EIN (Employee Identification Number) but do need to charge them sales tax for the state they are in plus I require some form of number, apparently. I've just received a special document from the tax authorities describing this plus we're talking to an accountant and the IRS here in the USA. I'll update as more information comes in as this will more than probably affect UK contractors (the US brought in new tax laws in 2013 dealing with this!)

[jamesbrown]

I'm not a UK taxpayer although this would affect them too. After further investigation we've discovered that I don't need one nor an EIN (Employee Identification Number) but do need to charge them sales tax for the state they are in plus I require some form of number, apparently. I've just received a special document from the tax authorities describing this plus we're talking to an accountant and the IRS here in the USA. I'll update as more information comes in as this will more than probably affect UK contractors (the US brought in new tax laws in 2013 dealing with this!)

Take a look at the link above and the W-8BEN-E. I have no idea why you'd be charging sales tax; you likely have no basis to collect and remit US sales tax. One of the keywords here is "nexus", i.e. a sufficient physical presence to determine liability to collect and remit sales tax. Admittedly, US states add another layer of complexity in dealing with US clients, but you need to be talking to the right people. I wouldn't necessarily trust what the IRS tells you or, indeed, a US accountant. This really is a situation where you need a specialist tax adviser.

Nevertheless, I'll keep an eye on this thread. I routinely deal with US clients, and I've never had a situation that's been anything other than straightforward (although, as I mentioned, it's frequently necessary to correct misinformation on reporting requirements, whether corporate or individual). In my experience, the hardest part is getting the necessary insurance or negotiating non-US jurisdiction and governing law.

[BlasterBates]

I too have an ITIN number I had to fill out W-8BEN-E, that's because I've bought shares registered on the US stock exchange, so I'm subject to witholding tax on divis.

Purely routine, just fill out the form and send it to the IRS.

It's to confirm that you are an "alien" and hence exempt from Sales Tax or whatever the rule is for "Aliens" eg reduced rate, completely exempt, otherwise the invoice might be expected to have Sales tax or whatever thr rule is.

[jamesbrown]

I too have an ITIN number I had to fill out W-8BEN-E, that's because I've bought shares registered on the US stock exchange, so I'm subject to witholding tax on divis.

Purely routine, just fill out the form and send it to the IRS.

It's to confirm that you are an "alien" and hence exempt from Sales Tax or whatever the rule is for "Aliens" eg reduced rate, completely exempt, otherwise the invoice might be expected to have Sales tax or whatever thr rule is.

Actually, for what it's worth, this is not quite the same thing. The W-8BEN has been around for a long time. However, pre-FATCA, there was absolutely no requirement for a non-US person receiving foreign-source income (and, for the OP, the income would be classified as foreign-source) to report anything to the IRS. What you're referring to above is actually a requirement imposed by certain financial institutions (your share broker) on their customers (you). This is not a requirement imposed by the IRS directly. Notwithstanding the link I posted above about the new requirements in the context of FATCA, there is absolutely no need or basis for a non-US person to report to the IRS on their foreign-source income (noting that both of these are technical terms).

[BogBeast]

W-8BEN-E or W-8BEN

Sorry to jump in on this post. I am in the same (or similar situation) to the OP).

I am contracting to a US based company to provide training services in Europe. My employing company is asking me to fill out a W8 form and I am to trying to understand if I need an ITIN number (and wait the 6 to 12 weeks and the hassle of getting one)

As everything I do is outside of the US (‘Foreign-Performed Services’) plus I have no other financial connection to the US
I am don’t think I do need an ITIN and can get away with the minimal form fill.

However I am not sure which version of the form I need to fill. I am new to the contracting game and am in the process of setting up my own ltd company. Its just me, on my own and payments will be going to that company.

Does this mean I need to fill out the W-8BEN-E instead?

Thanks for any advice …