tax id for itunes

How to Get ITIN Number to Sell on iTunes

Individuals and corporations that want to sell digital media on iTunes Store need to apply for an individual taxpayer identification number (ITIN). The tax number is required both for US residents and foreigners.

If you need help getting your ITIN tax id number, please call us at 407-344-1012, or email us at info@freedomtaxfl.com.

Corporations that want to sell digital products on iTunes Store also need to apply for a tax number. However, instead of ITIN, companies need to apply for Employer Identification Number (EIN). The tax number is required for both local and foreign corporations.

In order to upload digital media on iTunes, individuals and corporations need to perform the following two steps.

  1. Obtain ITIN / EIN from IRS that can take different forms depending on where you reside or are registered.
  2. Submit an online form W-8BEN / W-8BEN-E depending on whether you are individual or a corporation to register with iTunes Connect.

The process of applying for a tax number seems confusing to most people. In this article, we will provide all the information that is necessary to get rid of any confusion about how to get ITIN number to sell on iTunes as well as how to register with iTunes Connect using the tax number.

A. Obtaining ITIN / EIN from IRS

IRS issues ITIN to individual and EIN to corporations. The numbers are used for identification purposes. They help in the efficient processing of the tax information and are issued to both residents and foreign entities having a requirement to submit taxes to the IRS. These numbers do not serve any other purpose apart from tax reporting.

About ITIN

An ITIN consists of 9 digits with the starting number being 9 (9XX-XX-XXXX). An ITIN is required for only those US residents who do not qualify for a Social Security Number (SSN). US residents who have an SSN are not required to apply for an ITIN for selling products on iTunes. The Interactive Tax Assistant tool available on the IRS website can be used to determine whether an ITIN is required. Foreign individuals have no other option than to apply for an ITIN to sell digital products on iTunes.

The US taxation authority, the Internal Revenue Service (IRS) requires people that sell digital products on iTunes Store to register for an ITIN. You won’t be able to sell products at the Apple store if you do not have this number. Both local and foreign residents need to know how to get ITIN number to sell on iTunes.

Knowing about how to get ITIN number to sell on iTunes is necessary as it will allow you to self-publish digital items on the store. Without an ITIN, a self-publisher can’t sign up for the iTunes Connect account.

Apart from knowing how to get ITIN number to sell on iTunes, you should also know about the withholding rate in your country. The withholding tax rate differs depends on where you reside. IRS Publication 515 states the following tax rates for respective countries.

 

Australia — 5 percent
Bangladesh — 10 percent
China — 10 percent
India — 15 percent
Indonesia — 10 percent
Israel — 10 percent
S. Korea — 10 percent
Mexico — 10 percent
New Zealand — 5 percent
Philippines — 15 percent
Portugal — 10 percent
Spain — 5 percent
Sri Lanka — 10 percent
Thailand — 5 percent
Ukraine — 10 percent

 

Another important thing to keep in mind regarding how to get ITIN number to sell on iTunes is that no withholding tax will be deducted if you reside in Austria, Canada, Czech Republic, France, Germany, Italy, Japan, Netherlands, Pakistan, Russia, South Africa, Sweden, and the UK.

How to Get ITIN Number to Sell On iTunes

Many people try to obtain the number by contacting the US Embassy. But they can’t help you with that. In order to get the ITIN number, you need to contact the IRS. You need to dial the IRS number +12679411099 and inform the customer representative about your place of residence and ask how to get ITIN number to sell on iTunes.

Individuals who reside in the US have to follow a different procedure to obtain the tax number. They need to submit Form W-7, Application for IRS Individual Taxpayer Identification Number to obtain the ITIN number. Along with the document, the individuals have to attach federal income tax returns, foreign status documents, and original or certified copy of proof of identity. The form and the documents should be sent to the following address.

Internal Revenue Service
Austin Service Center
ITIN Operation
P.O. Box 149342
Austin, TX 78714-9342

Apart from applying through the mail, you can also apply for ITIN number by visiting IRS Taxpayer Assistance Center or through an Acceptance Agent authorized by the IRS.

If you reside in a foreign country, you don’t need to submit any documents. You will be given an ITIN number on the phone by the IRS representative after you have answered a few questions. The ITIN number will also be sent to you by mail within a fortnight. You should store this number in a safe place.

How to Obtain an EIN

EIN is used to identify a business entity. It consists of a unique nine-digit number that is issued by the IRS. The number is used for identification of the business and not for employee tax reporting purposes.

The process of obtaining EIN for corporations that want to sell on iTunes is simple. You can fill and mail the SS-4 form to the IRS. However, the fastest way to obtain EIN is by calling the IRS number. You will be given the EIN on the phone and the official document will be sent to you within a few days. Here are the steps that outline the process of obtaining EIN through the phone.

Step 1. Call the IRS

You should dial the IRS number +12679411099 and tell the representative that you are a business that requires an EIN.

Step 2. Provide Business Details

You will be asked to tell details about your business. You should tell that you want to sell digital products on iTunes. The IRS customer rep will ask you whether you have filled the SS-4 form. If not, you will be asked the questions regarding your business.

You should consider opening the online SS-4 form as it will help in interpreting the questions asked on the phone. Question 10 is a little tricky to answer. If you are applying for selling digital product on iTunes, you should tell the customer rep to check either ‘Compliance with IRS withholding regulations’ option or check Other and write For Tax Treaty Purposes Only.

Step 3. Verification of Company

After you have provided the required information, the agent will then conduct a company name search. Once your company name is verified, you will be provided with a unique EIN. You should store this number in a safe place.

What Should You Do With the ITIN / EIN?

Once you have received the ITIN / EIN from IRS, you should enter the information when filling out the form to register for an iTunes Connect account. You should wait about one to two weeks after receiving the tax number. This is required so that the IRS can enter your number in the database allowing it to properly process the application.

If you are registering as a corporation, you should keep in mind that Apple will verify the tax ID/company name combination with the IRS. In case the company name and tax ID does not match, you will be notified. This will happen if you enter a different name when registering with Apple than what was mentioned to the IRS.

Another important point to note is that if you are registering two or more corporations, you need to provide different EIN for each.

B. Submit Form W-8BEN / W-8BEN-E

Now that you know how to get ITIN number to sell on iTunes if you are an individual and EIN if a corporation , the next step is to register with iTunes Connect. Non-resident individuals and foreign corporations that are exempted from payment of taxes are required to submit form W-8BEN and W-8BEN-E, respectively.

On the form, you should enter the ITIN and EIN that you had obtained from the IRS. Submitting the form allows non-US resident individuals and foreign corporations to declare that they should be exempt from withholding taxes. You should mention the reason for which you request exemption from withholding tax. For instance, individuals and corporations from Canada should cite part II, #10: “Article VII” of the NAFTA treaty that applies to cross-border trade.

You can also call Apple support number if you want information on filing Forms W-8BEN and W-8BEN-E. The customer rep will walk you through in answering questions included in the forms.

An important point to note is that Apple requires developers or self-publishers who reside in Australia, Canada, and Japan is to submit a separate tax form when selling products on iTunes. This requirement is for both individuals and corporations. You will find a link of the required tax form in your Tunes Connect page. Instructions to fill the form will be mentioned in the form.

Filling out the forms is required even if your corporation is not required to register for a tax number in your own country. Apple will not charge tax to the customer. Instead, it absorbs cash from the commission on app sales and remits to the tax authority. You do not have to submit taxes on income from sales on iTunes.

Here are the steps for submitting separate tax forms in Australia, Canada, and Japan.

Australia

Step 1. Open the Agreements, Tax, and Banking section in iTunes Connect page.

Step 2. Select the required contract in Tax Info column.

Step 3. Click Set Up in the Australia Tax Form section.

Step 4. Now upload the required ABN and GST registration files. You should click on choose and then upload file.

Step 5. Click Submit, and then Done in the main Tax information page.

All corporations that are based and/or registered in Australia must submit ABN and GST registration information. You won’t receive any royalty payments for sales in Australia if you don’t provide correct information. If you reside in Australia but have registered a company in the US, you are not required to submit an ABN or other tax-related documentation.

Keep in mind that Apple does not accept ABN documentation through email. You should upload electronic evidence of the ABN number in the Agreement, Tax, and Banking section. You can either provide scanned image of Australian Business Register, or a screenshot of your ABN number from the government website.

Canada

Step 1. Open the Agreements, Tax, and Banking section in the iTunes Connect page.

Step 2. Select the required contract in the Tax Info column.

Step 3. Click Set Up in the Canada Tax Form section.

Step 4. Download QST Form 2506-V if your firm is registered in Quebec and GST/HST Form 506 for other areas in Canada.

Step 5. Fill, print and mail the form to the Apple address mentioned below. Make sure include original signatures in the filled form.

  • Apple Canada, Inc.

c/o Apple Inc.

MS: 198-2RA

12545 Riata Vista Circle

Austin, TX 78727-6524 USA

Step 6. Click Done.

Organizations that are based in Canada should file a separate GST/HST Form 506 or QST Form 2506-V. Also, organizations that are registered in Canada but based outside of the country should maintain the tax file. Apple won’t be able to pay you royalty payments on the product sales if you do not submit the taxation document.

For accelerated processing of the tax files, you should file a signed JPG and PDF Canadian tax document to vendortax@apple.com. You should mention your contract number and “Apple Canada, Inc. Tax Forms” in the subject line of the Email.

Japan

Step 1. Open the Agreements, Tax, and Banking section in iTunes Connect page.

Step 2. Select the required contract in Tax Info column.

Step 3. Click ‘learn more’ mentioned in the text at the bottom of the page.

Step 4. Enter the required information by following the instructions.

Step 5. Click Submit, and then Done in the main Tax information page.

Apple will review the tax application and then email you additional forms if required. You should fill the form, print it, and email to the Apple address mentioned in the form. The forms will be forwarded to the respective tax authorities. You will be notified once your application has been accepted. Until the application is approved, all sales will be subject to the standard withholding tax rates.

How to Update Tax Information with iTunes Connect

If you want to update tax information, you should contact the IRS. You can’t update the tax information on iTunes Connect. The customer representative will guide you on how to update the tax information. Once you have updated the information, you have to send the updated document received from IRS along with a cover letter with Apple ID that you use to sign the iTunes Connect account to Apple.

Keep in mind that the Agreements, Tax, and Banking section of iTunes Connect will not display updated tax information that you send to Apple. The website will display the original information that you entered when you first registered to iTunes. The information will remain even after you have sent an updated tax file unless you make a request with Apple to update the information on the website.

Conclusion

The taxation rules in the US are complex, especially for foreign nationals. However, after reading the information on how to get ITIN number to sell on iTunes and EIN if you want to register as a corporation, you will have an easier time registering with iTunes to sell digital projects. It’s vital that you know how to get ITIN number to sell on iTunes and EIN if registering as a corporation because you won’t receive any royalty on sales if you don’t provide tax details to Apple.

Apple deducts withholding tax on sales and pays to the IRS unless there is a special tax treaty with your country. An important point to note regarding ITINs is that they expire if they are not used in the past three years. This means that if you close the Apple account, your ITIN will expire if you do not use it for three years. In addition, all ITINs that issued by the IRS prior to 2013 having the middle digits of 78 or 79 (9xx-78/79-xxxx) are no longer valid. You need to apply again if your tax number has expired for any reason whatsoever.

In order to renew the ITIN, you should again follow the steps that have been mentioned above. You will receive a notification in case your ITIN has expired. Without a valid ITIN, you won’t receive any royalty payments from Apple which means that you should get a valid ITIN or EIN at your earliest if you wish to payments for the media you sell on iTunes.

If you need help getting your ITIN tax id number, please call us at 407-344-1012, or email us at info@freedomtaxfl.com.

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