Hi all,

Hoping someone can help me.


A US Uni want one of my images for an educational program, to use it as the icon/symbol of the program. I sold the image direct. However, not so easy.

Ireland has a tax treaty with the US, but without ITIN I will pay 30% tax. However, none of the stock sites require an ITIN from me.

So whats the difference? Why do I need an ITIN now? Is there any way around this?

Some advice is deeply appreciated.

THanks

I can't help as I haven't a clue, but if the worst comes to the worst, charge them 30% over and above the original rate if you would have to pay tax twice.

YEah, I already stated the 0% tax figure. But I told them that figure was without tax, and with tax it has t be 30% more. Its not a big number, but it will sort my issue for now.

I will have to get an ITIN number as this may occur again in the future if I want to sell to the US directly without PayPal or Credit Card payments

If you live in Ireland and are selling direct then you have nothing to think about. They are coming to you - effectively to your shop in Ireland. The sale is taking place in Ireland and Irish rules apply. There is no requirement to pay 30% US tax or to have a US tax number - none of that.

You simply declare the income from the sale on your self assessment tax return.

US tax (the 30% thing, tax numbers etc) - that stuff is only applicable when an agency is based in the US. If they have supplied you with a form which has a box for a tax number - the correct thing to put in that box is "not applicable".

Ps - it's the same as you don't pay US tax when a client in the US buys one of your images from, say, Alamy. Or any other non US agent.

ditto on this.

Thanks, this is what they say:

Quote

There are several things to understand.

1) While there is a tax treaty between US and Ireland, a requirement to claim any tax treaty is to have a valid US tax ID number.  Without it, the tax withholding is 30%.

2) A sale would be a direct purchase of a product that we have unlimited
right to use and reproduce.    This is not a sale but a license fee - which
is considered by the IRS to be copyright income and is subject to taxes where the copyright is used.  Other customers may not be aware of this.

They are wrong. Most likely the person you are dealing with is used to dealing with US based photographers.

Although - even that does not quite make sense because it is not the business of the client to collect withholding taxes. So maybe they themselves have received poor advice.

I think the guy is a consultant from payrol at the UCLA. They work with a GLACIER system and I filled out my details and it says because I am a Nonresident alien I need ITIN.

Hmmm, not sure how to convince them other wise. I will give him a call.

they couldn't be more wrong..

their imagination is ridiculously wide that if they try harder they could even see the smurfs..

the level of ignorance is too high that it sounds like a scam to me..

I have been reading up on the internet, and it seems true that I need an ITIN. Does anyone have a link where it says that I dont need one for what I am selling?

well 4 of us here tried to help..

if you still insist that you need an ITIN, then get one 

.

.

You would need a tax number if they were sub licensing (selling on) your work and paying you a royalty of sales which they collect. But that is not what you have implied.

When an agency sells a licence to use your image they pay you a royalty. In this case though you are selling them direct (in Ireland) a licence to use your image. They are not paying you a royalty.

The term 'non-resident alien' would be applicable if you were temporarily in the US and for some reason being paid via their payroll system. And that, it seems to me, is the issue. It is not for them to pay you via their payroll system. It is for you to raise an invoice which they then settle.

In terms of providing a link - you are not going to find one. Because they have misunderstood the situation. But you could provide an example. Just remind them that it is the same as if they were buying an image from, say, Istock.

[BTW - The thread you linked to about agencies possibly having made arrangements with IRS is irrelevant in this context. Those are agencies which are based in the US and which therefore fall under US jurisdiction.]

Ok, I saw what Thinkstock posted as well and I believe to the a nonresident alien. Or do I have that part wrong? I am not living in the US, nonresident, and I am not American, so Alien.

And yes, the ITIN, stands for Individual.

Edit: I missed what Aspp wrote, which does make sense now.

An Individual Taxpayer Identification Number (or ITIN) is a United States tax processing number. If you do not live in the US than you don't need it. Period.

Traveling light, I filled out my w-8ben at every agency but never filled in the ITIN and still pay 0%

I went with Aspp's explanation and will let you know how it goes. Might be helpful for future reference.

If you're a sole trader then you don't need to collect tax on any sales.

The buyer will will offset the purchase against their tax bill as an expense, not your worry unless your turnover is larger 75,000 euros. Seeing as your selling one picture, just give them a receipt for their purchase.

When you hit 75K a year hire an accountant and let them sort it out :-)

http://www.revenue.ie/en/tax/vat/registration/

Hey Matt, thanks! I know that page very well as I registered my business name in Ireland