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placing American "green" ads on my website

solar81
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Joined: 04 Nov 08
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placing American "green" ads on my website

Is it worthwhile having ads on your website? I plan on adding some ads - the picture and text based ones to my website. Only problem I'm having is the fact that most of the ads i want to place on my website are American company based, which means i don't have a tax ID No for the American tax system (I'm a Australian Citizen)

I've been told i need to fill out a W-8BEN form ( http://www.irs.gov/pub/irs-pdf/fw8ben.pdf ) for the IRS, that's all well and good but half the info they ask for i don't have such as:

6)I do not have a U.S. taxpayer identification number
7) nor do i have a Foreign tax identification number - unless referring to the Australian Tax file Number?
8) What do they mean by reference number?

hence my question:
1. Is it worthwhile having ads?
2. If so are there any Australian based companies that encourage / promote "green" products / services
3. Is it worthwhile obtaining a tax No in order to use American company ads?
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Last edited by faradina on 15 Feb 11 1:45 am, edited 1 time in total.
Reason: typo errors
 

michael025
Posts: 232
Joined: 07 Oct 10
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Hi Solar81, I don't think you really need to apply for a tax ID number if you're interested in promoting "green" products from american companies as long as the products are digital or web based...as a matter of fact, we have a green energy niche in our affilojetpack where we recommend several products where the vendor is American based....you might also want to check with the vendor of a specific product you wish to promote as they should know what you need in order to put their ads on your website.....

Hope that helps : )
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solar81
Posts: 13
Joined: 04 Nov 08
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michael025 wrote:Hi Solar81, I don't think you really need to apply for a tax ID number if you're interested in promoting "green" products from american companies as long as the products are digital or web based...as a matter of fact, we have a green energy niche in our affilojetpack where we recommend several products where the vendor is American based....you might also want to check with the vendor of a specific product you wish to promote as they should know what you need in order to put their ads on your website.....

Hope that helps : )



So Non-US citizens can legally (and not be penalized tax wise or in any other form i may not know of yet) place adds (in digital or web based format) on their website (my website from Australia etc) from a American company regardless of the income generated?
How would the American company (that I'm promoting a add on my website) gain out of that if no tax is charged? The only gain i can see from that is extra exposure on the world wide web for them.... If that is the case why would the affiliate application form ask for tax info regardless of being a US or non-US citizen?

I'm just trying to cover myself before my website (and its adds) are placed online for good.

Alternatively if anyone knows of any green affiliate websites based in Australia - I've tried looking there isn't many around please let me know (at least ill have correct tax info already)

Please tell me more of this affilojetpack you speak of, i did a search on this website it didn't come up with much

Solar
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kajm
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Joined: 21 Jul 10
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Hi Solar
The W8 for is used by american companies so that they don't have to account for withholding tax paid to foreigners. I'm not sure about the Australian system but NZ has no tax treaty benefit with the USA because we have different ways for account for tax overseas. For example as a foreign US national you have to account for income earned overseas and pay tax on that money in the USA even if you are not living in the USA. For instance an American living and working in New Zealand would pay the New Zealand tax and on top of that, pay tax on the same income to the American IRS also. A New Zealander living in the USA would pay the American tax to the american IRS and no more.
As a Kiwi livning in NZ any income I earn in the USA must be reported in my annual income and I pay NZ tax on it but no US tax. I am not liable for US tax and as there is no beneficial tax treaty I don't even have to fill in that part of the W8 form. All you need to put is your name and address, tick that you're an individual and you're giving a true statement and thats it. You don't have to fill in the IRD numbers etc. The American company will be happy with that info and just send you the cheque.
Additionally I have set up an American limited liability company to have an American presence for a digital product I sell only in America. I have an EIN but interestingly because I am a foreign national I still pay no tax in the USA. The profits pass through the company to the owner (Me) and I pay the tax in my country of living (NZ). I do however have to pay income tax for any employee and I have to pay sales tax on any product sold in the state where my company is based.

Hope this helps
Kevin
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solar81
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that helps heaps thanks for that :)
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PremiumMember
gradyp
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One theme you'll see over and over as relates to taxes is to talk with a local accountant/CPA/attorney as these things can (and do) vary by where you are.

Grady
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liveinasiablog
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Joined: 06 Dec 10
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For instance an American living and working in New Zealand would pay the New Zealand tax and on top of that, pay tax on the same income to the American IRS also.


No offense, but this is 100% false.

You should probably not get tax advice from the Affilorama site.

To answer your primary question...In my opinion, it is not worth it to place ads on your site--other than ads that promote the affiliate product you are selling.

Why? ...two reasons
1. Your affiliate products pay out way higher than anyone is going to pay you to host ads (unless by "ads" you just mean that you want to promote an additional affiliate product).
2. Having too many ads is proven to confuse customers and drive down conversion rates.

Good luck!

Ryan
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mikeantiga
Posts: 787
Joined: 28 Mar 10
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Based on my experience being an affiliate of several US based hosting companies, you only need to fill out the W8-BEN form or the Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and then submit it to the merchant for processing.The form, according to Wikipedia, is used to certify your non-American status by establishing that you are a non-resident alien or foreign corporation, to avoid or reduce tax withholding from the U.S.

You do not need to enter any Tax ID number (TIN) and Social Security Number (SSN).
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solar81
Posts: 13
Joined: 04 Nov 08
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liveinasiablog wrote:
For instance an American living and working in New Zealand would pay the New Zealand tax and on top of that, pay tax on the same income to the American IRS also.


No offense, but this is 100% false.

You should probably not get tax advice from the Affilorama site.

To answer your primary question...In my opinion, it is not worth it to place ads on your site--other than ads that promote the affiliate product you are selling.

Why? ...two reasons
1. Your affiliate products pay out way higher than anyone is going to pay you to host ads (unless by "ads" you just mean that you want to promote an additional affiliate product).
2. Having too many ads is proven to confuse customers and drive down conversion rates.

Good luck!

Ryan



the adds ill be placing will be to do with my chosen topic - green living. the adds i hope to use are only for promoting green products / ebooks etc. for example i may use a add that promotes green gifts / presents.
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liveinasiablog
Posts: 136
Joined: 06 Dec 10
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the adds ill be placing will be to do with my chosen topic - green living. the adds i hope to use are only for promoting green products / ebooks etc. for example i may use a add that promotes green gifts / presents.


Have you thought about using an Amazon aStore? The commissions aren't that high, but you can focus on selling more expensive products.

I have a "green energy" site too. If you want to check out what I'm selling, just stop by and have a look. To see the Amazon store, click on "products." http://makeenergynow.com

Except for my Amazon store, I only sell two things, wind turbine and solar panel plans. I'm no expert, but I think you would probably be best just focusing on those products until your site starts getting a lot of traffic. Otherwise, you run the risk of complicating things and losing focus.

Best of luck!

Ryan
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covenantguy
Posts: 162
Joined: 08 Feb 10
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kajm wrote:Hi Solar
The W8 for is used by american companies but NZ has no tax treaty benefit with the USA because we have different ways for account for tax overseas. For example as a foreign US national you have to account for income earned overseas and pay tax on that money in the USA even if you are not living in the USA. .......As a Kiwi livning in NZ any income I earn in the USA must be reported in my annual income and I pay NZ tax on it but no US tax. I am not liable for US tax and as there is no beneficial tax treaty I don't even have to fill in that part of the W8 form. All you need to put is your name and address, tick that you're an individual and you're giving a true statement and thats it. You don't have to fill in the IRD numbers etc. The American company will be happy with that info and just send you the cheque.
Kevin


Kevin I logged on to my Amazon account (And I also have a KDP account for ebooks) and it says "Before we can pay you, we must have your Tax Information". Its asking me for a "Foreign (non-U.S.) income tax identification number (TIN)". I live in NZ and am a NZ permananet resident and just do a bit of affiliate marketing. What do I put for the TIN number as it requires and answer saying either I ahve a non-US TIN number or a U.S TIN number?
(It does say I don't need to put a TIN number down BUT"any reduction of the 30% statutory withholding tax rate applicable to your U.S. source payments will not apply until you can provide a TIN.").

I just exited the form before completing it. Any ideas?

Also I remeber my KDP account asked me some time ago something similar and I did fill out a W8-BEN form but from what you have said I am not sure I should have. I think Amazon docks 30 % whenever they send me one of my measly commissions.!
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