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.
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 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 can be found on the IRS website.
To get started, you will have to download the W-8BEN form from the IRS website.
Below I have provided an example of how to fill out the form as a Canadian.
Things to note:
- 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 will be helpful to those of you who are getting started selling your art through Print on Demand websites and are required to submit this form.
Let me know your thoughts or questions be leaving a comment below.
Cheers!
Julie
Looking for more information about selling your art through Print on Demand sites?
Check out these posts!
- How to Sell Your Art Online in 5 Steps
- How to Design for Print on Demand Websites
- Selling your art on POD websites – Zazzle vs Society6
- Selling your Art on POD Websites – Redbubble vs. Society6
- Selling your Art on POD Websites – TeePublic Edition
- Social Media Marketing Tips For Artists
- Blogging for Your Art Business
- How to Increase Your Sales on POD Websites
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! :)