Posted on 2015-Jan-04
Happy New Year’s! For those clients as diligent and morally upstanding as Ned Flanders, you may have already started on your 2014 taxes. For those like me who wait until the last minute, not to worry! You can access your record of payments to us at any time.
All payments made to BB eBooks are of course professional fees related to your business and should be deducted as expenses. To access all individual payments made, you can go to BB Client and see all your orders under “My Orders”. If you would like a consolidated receipt by year or for all years, you can access this new feature under “My Reports”. Aside from taxes, this can also be useful for bookkeeping purposes.
If you are an existing client, but don’t have access to BB Client, please feel free to contact me for login information.
U.S. Tax Obligations
For our U.S. clients, there has been some understandable confusion about 1099s. For BB eBooks, we are a non-U.S. company with 100% non-U.S. shareholders, so it is not necessary to issue us 1099s for services performed (since we are not obligated to pay U.S. taxes). However, since BB eBooks is a “foreign” contractor, we do have to provide you something called a W-8BEN-E. It basically states that BB eBooks is not a foreign financial institution; rather, we are a privately-held company providing the services you’ve come to expect from us. This is required per the new FATCA regulations to ensure you aren’t secretly harboring funds offshore (trust us, we already spent the money you gave us). You are not required to file the W-8BEN-E with the IRS, but you should keep it on file.
Value-Added Tax (VAT)
BB eBooks is VAT-registered with the Thai authorities. We are required to pay Value-Added Tax for all transactions with clients who intend to use our services while in Thailand (so anyone residing in Thailand, Thai or expat). The current VAT rate is a flat 7%, and we always include VAT as part of the quote. If you are based on Thailand and need a special “Tax Invoice” to file with your monthly VAT report to the Thai Revenue Department, please feel free to contact us separately and we can provide one for you. If you are not VAT-Registered in Thailand you can disregard this entire paragraph.
For our cousins in the EU, the new regulations on VAT went into effect on January 1, 2015. The VAT applies to digital good transactions based on the customer’s country rather than the supplier’s. This has created huge problems for small businesses that engage in ecommerce and has created significant fear and loathing about how to price eBooks (more on this later as we get our arms around it). This affects business-to-consumer (B2C) transactions of digital goods. However, for BB eBooks we do not sell “digital goods” defined under the new law so the EU VAT rates at the place of the customer do not apply.
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