MicrostockGroup

Do you mean going to the Embassy in London to apply for an ITIN?

It's not required (anymore or yet); they first said it was necessary, but then they decided it's enough to fill the W-8BEN form online. The same is valid for most other sites besides Shutterstock.

I got myself an EIN instead of a personal ITIN number because you can just phone up for that instead of all the hassle of filling out paperwork. I think it was RT that mentioned here you could do that if you are set up as a company/ partnership? not sure if it works for self employed?
I don't know if you need to renew it every year, I haven't renewed since the agencies started asking for it.

That's the relevant text taken from their tax center:

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"A.   Are you submitting to Shutterstock as an individual? If "yes", then you fall into one of these three groups:

Group A1 -- If you are submitting to Shutterstock as an individual and are a U.S. citizen or resident alien, then no matter where you are worldwide you can submit Form W-9 to us to satisfy your filing requirement. Typically there will be no withholding of taxes on any of your Shutterstock income.

Group A2 -- If you are submitting to Shutterstock as an individual and are a resident of a country that has a tax treaty with the U.S., then please submit Form W-8BEN digitally on Shutterstock's website to benefit from the reduced or zero withholding rate that is specified in your country's tax treaty. Note that a U.S. Tax ID # (TIN) is not required for Group A2.

Group A3 -- If you are submitting to Shutterstock as an individual and are not a resident of a country that has a tax treaty with the U.S., then your U.S. source income from Shutterstock will be subject to 30% withholding tax. Please submit Form W-8BEN to us digitally on our website. Note that a U.S. Tax ID # (TIN) is not required for Group A3."
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You, same as myself, should come under group A2, as long as you're not submitting as a LLC, partnership or corporation...

What paperwork? It's only a small online form that takes 1 minute to finish. Two minutes if you are a slow reader.

Type your name:
List your country:
Individual or company:
Type your adress:
Are you sure you are a legal citizen of your country: yes/no
Type your name once more as a signature.

Done.

So you don't need to get anything notarised, send away your passport or go to London?
OK, thanks for the info.

On a point of question even though I'm in the US. No you don't need to renew an EIN. Once you have it, you are registered.

Also you are only taxed on images sold in the US which is a surprisingly small percentage of all sales.

You lost me. We all sell photos and graphics, what difference does it make if I sell a picture from the USA in Australia or if someone from Romania sells a photo in the US. This is a world market.

fotografer:

So you mean all this tax stuff isn't just selling from an agency and having them hold money (which you should get back after filing the proper forms) But also about where the image is sold?

So hypothetical, 80% of the SS sales appear to be coming from out of the US right now. Only 20% of the sales are having a bite taken out of them? Interesting. Never caught thatpart before. I thought it was everything? Of course it's easy not to know, I get a 1099 and file taxes in the US, paying taxes on EVERYTHING no matter where it's sold.

double post

In some jurisdictions tax already paid will be offset against any further liabilities. So if tax has already been paid then the business will be not always be additionally taxed on that part of the income. Even where no double taxation treaty exists.

But I am surprised that this needs to apply to subscription sales at all - that the royalty is deemed to be a part of the subscription package - ie part of the transaction between the agency and their client. From the photographers' perspectives their client / buyer is surely, effectively, the 'agency'. The 'agency' is surely effectively buying the right to use the picture as part of a subscription which they then sell in the US.

ETA: My point (or question I suppose) being that from an accounting perspective is it clear that selling a subscription amounts to acting as an 'agent' ?

Of course! Same question I was wondering myself...
But unfortunately, there is always someone who would make such theories...
Sorry for off topic!