Amazon Kindle Tax Requirements – Taxes for Self-Published Authors

Amazon Kindle Tax Requirements

Taxes for Self-Published Authors

Amazon requires all publishers, including nonprofit or tax-exempt organizations, to provide valid taxpayer identification in order to comply with U.S. tax reporting regulations.

Amazon Kindle Tax withholding and specific requirements vary based on whether you are a U.S. person or non-U.S. person. According to the IRS, for U.S. federal tax purposes, a U.S. person includes, but is not limited to:

An individual who is a U.S. citizen or U.S. resident alien
A partnership, corporation, company, or association created or organized in the U.S. or under the laws of the U.S.
Any estate (other than a foreign estate). A domestic trust (as defined in Regulations section for Forms W-9 not required to be signed 301.7701-7)

If you are a non-U.S. publisher interested in claiming tax treaty benefits to reduce your withholding, you will have to provide a tax identification number (TIN). If you have a U.S. TIN (ITIN for individuals, EIN for non-individuals), you must provide it. If you do not have a U.S. TIN and the tax authority in your country of residence issues an income tax identification number, you may enter it to claim treaty benefits.

If you are a non-U.S. publisher whose income is effectively connected with a U.S. trade or business, and you file a U.S. income tax return for the effectively connected income then you are required to provide a U.S. TIN (ITIN or EIN for individuals; EIN for non-individuals) when completing the IRS Form W-8ECI. In general, your income is effectively connected with a U.S. trade or business if you have employees in the U.S., own, lease or control equipment or other assets in the U.S. that you use to generate revenue, or have a permanent establishment in the U.S.

It is not necessary to have a TIN in order to complete the tax interview. However, any reduction of the statutory withholding tax rate (30%) applicable to your U.S. source payments will not apply until you can provide a TIN.

If you are in the process of applying for a U.S. TIN, you can submit your tax information now in our online tax interview without a TIN, and then retake the interview once you receive your TIN from the IRS.

A U.S. TIN may take the form of an Employer Identification Number (EIN), a Social Security Number (SSN), or Individual Tax Identification Number (ITIN). You can learn more about EIN (business entities) and ITIN (individuals) numbers by visiting our Help Page Applying for a U.S. TIN (Taxpayer ID Number)

Amazon Kindle Tax ID Submission Process

Kindle Tax Interview
Amazon requires all publishers, including non-profit or tax-exempt organizations, to provide valid taxpayer identification in order to comply with U.S. tax reporting regulations using the short online tax interview accessible from the KDP Account page.

You must provide this information before publishing and selling your books on the Kindle Store. The interview guides you through a step-by-step process, which gathers all necessary information required to establish your tax identity and generate a Form W-9 for either U.S. Publishers or Form W-8 for Non-U.S. Publishers.

Tax ID Validation
If you are a U.S. publisher or non-U.S. publisher that provides a U.S. TIN, the Internal Revenue Service (IRS) must validate your tax ID information. This process is subject to IRS database outages that can delay the process. In addition, any recently issued TINS can take up to 60 days to process, as they are not yet part of the IRS database.

Tax Account Status
Publishers are eligible to sell on Amazon once a “Completed” status appears in the Tax Information section of the KDP Account page. If you input a U.S. Tax ID and it does not match Internal Revenue Service (IRS) records, we will update your tax status to indicate further information is necessary. Until we receive valid tax information, any publishing restrictions remain in place. We will not lift any publishing restrictions will until we receive updated and valid information.

Please note, if a non-U.S. publisher has not entered a U.S. TIN and instead has entered the income tax identification number issued by the tax authority in their country of residence, this section does not apply.

Kindle Tax Withholding

Tax withholding rates vary across Kindle Stores based on whether you are a U.S. person or a non-U.S. person. Non-U.S. Publishers may be eligible for a reduced rate of U.S. tax withholding if your country of permanent residence has an income tax treaty with the U.S.

*this information has been taken from the Amazon website so please check for any recent updates.