{"id":1624,"date":"2021-01-13T21:00:00","date_gmt":"2021-01-13T15:30:00","guid":{"rendered":"https:\/\/www.complianceprime.com\/blog\/?p=1624"},"modified":"2021-01-13T21:00:00","modified_gmt":"2021-01-13T15:30:00","slug":"w-8ben-e-form-a-guide-for-non-us-small-businesses","status":"publish","type":"post","link":"https:\/\/www.complianceprime.com\/blog\/2021\/01\/13\/w-8ben-e-form-a-guide-for-non-us-small-businesses\/","title":{"rendered":"W-8BEN-E Form: A Guide for Non-US Small Businesses"},"content":{"rendered":"

The W-8BEN-E is an Internal Revenue Service (IRS) form used by foreign organizations for doing business in the U.S. Only organizations and corporations need to file the W-8BEN-E form. Sole proprietors and individuals need to file the form. According to the <\/span>University of Washington<\/span><\/a>, the W-8BEN-E form is used to authenticate that a merchant is a foreign organization and must be filled before the merchant can be paid.\u00a0<\/span><\/p>\n

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What Is the W-8BEN-E Form?<\/span><\/h2>\n

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The W-8BEN-E is a form from the tax collection agency of the United State, the IRS (Internal Revenue Service). All non-U.S. (foreign) organizations that are getting payment from an American firm must fill out the W-8BEN-E form. The form is used to verify that the organization presenting the assistance is indeed a foreign entity. The W-8BEN-E is a new form that came regarding thanks to The FATCA (Foreign Account Tax Compliance Act).\u00a0<\/span><\/p>\n

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According to <\/span>Thomson Reuters<\/span><\/a>, FATCA came in place in 2010 so that the Internal Revenue Service could learn more regarding the United States residents who are earning income or investing through non-U.S. sources, international. Also, its focus on cross-border tax acquiescence extends to foreign entities doing organizations with the United States clients.<\/span><\/p>\n

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Different Requirements For Different Merchants<\/span><\/h2>\n

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There are different requirements for different merchants. The W-8BEN-E form is lengthy, and it has thirty sections. But, not all the fields of the form is to be filled by a foreign merchant to get paid by a United States organization. The requirements vary.<\/span><\/p>\n

For example, <\/span>The University of Washington<\/span><\/a> only requires foreign merchants to fill out:<\/span><\/p>\n