Kindle Publishing Non US Tax Status Now Made Easy

kindle publishing non US tax

Back in the summer I decided that I really needed to sort out my tax status on the kindle publishing platform. Why? Well my kindle book sales were increasing and I was beginning to realise that paying 30% tax on my royalties was starting to build up!

Initially it hadn’t bothered me because I was only selling a few books every now and then but as I have increased the number of books published and in particular after book number 4 (I don’t know if that is a special number or not!) I saw a big increase in overall sales.

Therefore I became more aware of the impact of only receiving 70% of my royalties as they came in each month. Since I live in the UK I have to pay 30% tax on all my royalties unless I submit an identification number to prove I live in a country that has a treaty with the US and therefore don’t have to pay any tax! (That’s the agreement for the UK – it will be different depending on the country you live in).

It then occurred to me that not only was I paying 30% tax to the US, I was also declaring that income in the UK and therefore being taxed on it again! All of this was becoming ‘taxing’ if you’ll excuse the awful pun there! 🙂

So I was looking to see how you go about getting this special identification number which is called an ITIN or EIN number. At first it seemed you could fill out an online form and submit it to obtain this number but that functionality was removed for people living outside of the US!

Basically I needed to telephone a US number and speak to someone and get it that way. Of course calling the US would be expensive and I had no idea of how long I might be on the phone! So I procrastinated… until last week!

It Has Now Changed – Yeah!

Last Wednesday I had decided to set up a Skype call as it would be less expensive, and get this tax number. I had printed out the form and filled it in so that I knew exactly what the answers should be to save time!

I then visited the original website I had used to understand what I needed to do for last minute tips on how to go about it – thank you to Catherine Howard by the way!  I discovered that it has changed and is now really easy!

I don’t remember seeing any email from kindle publishing with this extremely useful and relevant information! If you live in the UK you can now just use your NI (national insurance) number!

So I logged into my kindle publishing account and clicked on the Update Tax Information tab and added my NI number where I needed to. Clicked to save, print and then finish and here it is – the proof 0%:

kindle publishing non US tax

This is what it says on Amazon KDP:

“If you are claiming a reduced rate of withholding tax under an income tax treaty and do not have a U.S. TIN, provide your foreign (non-U.S.) income tax identification number to receive treaty benefits. This number is issued by your local tax authority or government for income tax purposes.”

So there you have it. If you haven’t sorted this out for yourself yet then you now can – quickly and easily!

18 Comments on “Kindle Publishing Non US Tax Status Now Made Easy”

  1. Hello Key,

    Thank you for that. Does that mean that tax will be paid automatically and there is no need to do a self assessment? Even if we have income from other sources? (income that is already taxed)

    Cheers

    1. It means that since USA has an agreement with UK, there is no USA tax to pay. However, all income where ever it’s from should still be declared when you fill out your self assessment for the year.

  2. So, I am a resident of the UK and I have a National Insurance Number, but I haven’t self published any books with Amazon yet. Could I apply using my NI number because it sounds like you have to supply your NI as a second option after giving them the Tax identification Number

  3. Kay, shouldn’t this be your tax number, as supplied on self-assesment materials/letters from HMRC, rather than your NI number?

    That’s what I used for the ‘interview’ for amazon affiliates.

    1. I’ve been checking. Apparently HMRC does use two different numbers in its communications with you, and TINs are used to try and unify international tax tracking. According to the EU, we don’t have a single TIN, the way some countries do, but they list both, which suggests either could be used.

      https://ec.europa.eu/taxation_customs/tin/pdf/en/TIN_-_country_sheet_UK_en.pdf

      HMRC have this.

      https://www.gov.uk/hmrc-internal-manuals/international-exchange-of-information/ieim402040

      The key is at the end of the page: “For most individuals in the UK the TIN will be their National Insurance Number.”

      That may be a better reference, if you hit an awkward official, than Kay’s experience, or yours. But not everybody has an NI number. Most of the rest of Europe has a simpler official ID system than we have here, no need for fussing with finding a recent utility bill.

  4. Hi Kay,

    What can we do about claiming back ALL the 30% tax witheld from previous years with Amazon? They will only give tax information for 2 years and I have been publishing books on KDP for 7.

    Joshua

  5. Hi Kay,

    I am a new visitor to your website. I love your site. You seem like such an awesome person. do you do any one-on-one coaching? Thank you so much for all the valuable information you provide.

  6. Thank You, Kay! Even though I’d done new tax interview, 30% was still being withheld.

    Decided to try once again after reading this post..re-submitted my country tax ID number… did before but saw NO sign of it awhile ago.. and it was reduced to 10%. Turns out that the right percentage for Jamaica. 😉

    Thank You SOOOO MUCH!

  7. Pingback: List of Resources for My Book Converting Kindle to Createspace | Kay Franklin Info Products

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