To Amazon UK sellers. Does anybody know what Federal Employer Identification Number ( FEIN ) is? We have started selling in the US and want to pay tax but the Accountant cant do anything without the FAIN number. Could you help?
Google is your friend…
The Employer Identification Number ( EIN ), also known as the Federal Employer Identification Number (FEIN) or the Federal Tax Identification Number , is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to business entities operating in the United States for the purposes of identification .
Neil, I know google definition but what is the connection to Amazon account. Will I get it automatically during opening Amazon.com account or we need to apply separately.
I suggest that you read the link.
Amazon are not going to give you an employer id number! That’s what the IRS do.
ok but what does it have to to UK LTD company selling on Amazon US ?
Step 1: Determine Your Eligibility
- You may apply for an EIN online if your principal business is located in the United States or U.S. Territories.
- The person applying online must have a valid Taxpayer Identification Number (SSN, ITIN, EIN).
I can only suggest, that you give them a call.
The IRS will be able to advise you of exactly what is required.
It has nothing to do with Amazon. It’s a bit like getting a UTR number from HMRC in the UK. You will need to apply to the IRS.
From the UK you can’t apply online, you need to phone them. There’s a form on the IRS website which I recommend you download and fill in. Then when you phone them you’ll have all the details to hand.
I also recommend phoning on a Friday night as it’s generally quieter. I think it took me about 20 mins waiting and 20 mins answering their questions. At the end they will give you your EIN on the spot.
BTW since there is a taxation treaty between the US & UK you can pay your income tax/corporation tax in the UK if you wish. You only need to pay US income tax/corporation tax if you set up a US company.
It’s still worth getting an EIN though because they sometimes ask for it if you import goods from outside the US.
As a non-US based seller, you should select the appropriate option when completing your “Tax interview” when setting up/updating your Amazon USA Seller Account.
If you need help, post here screenshots of all the pages which you are filling, there must be an option for you to declare that you are a non-US seller, therefore not required to provide this.
I was able to completely skip the section after declaring so.
I believe I did. We are present on US market and already sold some items and this is why we want to register us to collect and pay Sales Tax. The US accountant asked for this number and he is convinced ha cant register us without this.
Amazon collects and remits Sales Tax on your behalf. You are not required to pay it.
hmmm as far as I know it happens only in few States.
You are correct, it is only certain states that have Amazon collect and remit on your behalf.
Be sure to undertake extensive due dilligence: even though you are still selling in certain states, you may be well below the threshold required to register. Once you do, it opens a big can of worms. In some states, registering for sales tax will also make you liable for state corporation tax.
As for the FEIN, once you have it, you will be obliged to file federal corporation tax returns. Even though the UK have a recipricol tax treaty, you still need to file in the US. Failure so do so will result in fines being issued by the IRS.
Your US based accountant should be able to advise you further. And don’t forget the insurance.
Insurance ? covering what?
Product liability insurance. Some have it, some don’t but knowing the nature of the Americans when it comes to lawsuits, we think it’s essential.
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