Ah tax forms, one of those annoying administrative tasks we have to do to sell artwork online through Print on Demand websites. Many U.S. based Print on Demand companies, like Zazzle, require a W-8BEN tax form to be filled out and submitted in order for payments to be processed correctly.
This form can be confusing, and if you don’t submit it or fill it out properly your royalties can be subject to a whopping 30% withholding tax!
As long as you live in a country that has an income tax treaty with the U.S. (such as Canada) you either do not need to pay this withholding tax, or may have to pay a reduced withholding tax. Here is a short list of countries with tax treaties with the U.S. and their withholding amounts. A more comprehensive list is located on the IRS website.
Get started by downloading the W-8BEN tax form from the IRS website.
Below I have provided an example of how to fill out the form as a Canadian.
Things to note while filling out the W8-BEN tax form:
- The SIN number (Line 6) is the same as a U.S. Social Security Number. I am assuming most countries have an equivalent personal identification number for tax purposes.
- The ____% rate of withholding (Line 10) may differ depending on the withholding tax rate of your resident country. This is where you will use the list provided at the link above.
I hope this guide is helpful for those of you who selling art online through Print on Demand websites that require this form.
Let me know your thoughts or questions be leaving a comment below!
Cheers!
Looking for more information about selling your art through Print on Demand sites? Check out the resources section of my website.
Oh man I was JUST reading up on some stuff and discovered these pesky forms not too long ago! Something often is left out of POD or other sites unless you look real hard — how to deal with the taxes! Thank you for this, this will help. However, I’ve been scouting around Redbubble and planning on opening a store there first. Buut unlike Zazzle (and Society6?) there doesn’t seem to be an area to submit a tax form. On payment details, you got where you put your paypal email, right? Where do you upload the tax form? Do you have to physically send it to them?
Redbubble is based in Australia actually so I think that’s why they don’t require this form, only U.S. based companies will.
Oohh okay, should have guessed that! So what does this mean now for us Canadian shop owners with Redbubble? Do we still have ANY tax forms through Red Bubble, or would it be just the usual filing our taxes as a freelancer (or whatever it is equivalent) for our returns?
I only send them what they ask for, I don’t think there were any tax forms for Redbubble. Your earnings would be claimed at tax time yes, as a freelancer or as “other income” etc.
Okay, good to know, thank you! :)