Taxes selling POD to the US: what the W-8BEN form means for Vietnamese sellers
You just got approved for Amazon Merch on Demand, or opened a Redbubble shop. You're eager to upload your first design when the screen stops you: "Please complete your tax information". A string of unfamiliar words appears: W-8BEN, withholding, tax treaty... You're confused: do I have to pay taxes to the US, will I get penalized if I fill it out wrong, and why does a Vietnamese person sitting in Vietnam have to file taxes with a US marketplace?
This article explains those concepts in plain terms. But let me be clear up front: this is an introduction to the concepts, NOT tax or legal advice. Everyone's situation is different, so for your specific case you should consult a tax professional.
Why do Vietnamese sellers have to file taxes with US marketplaces?
Marketplaces like Amazon and Redbubble are based in the US and are subject to the US tax authority (the IRS). When they pay anyone, including foreigners, US law requires them to determine who the recipient is, where they are, and whether they're subject to US taxation.
In other words, making you fill out a tax form isn't meant to give you a hard time; it's the marketplace's own compliance obligation under US law. If you don't file, the marketplace has to default you to the least favorable status and may withhold part of your income. That's why filling out the form completely is usually more to your benefit than leaving it blank.
What is the W-8BEN?
The W-8BEN is an IRS form for foreign individuals (not US citizens or residents) to declare to the payer that: I am a foreign person and not subject to US income tax in the ordinary way. Essentially, it's how you self-declare your tax residency status, helping the payer determine the correct level of withholding at the source. For most Vietnamese POD sellers who are individuals, this is the form you'll typically encounter.
What are withholding and a double-taxation treaty?
Withholding at the source means the payer keeps back part of a payment to remit to the tax authority, instead of handing all of it to you. This is a common tax-collection mechanism in many countries, not just the US. How much is kept back depends on the type of income and the recipient's declared status.
A double-taxation treaty (tax treaty) is an agreement between two countries meant to prevent a single stream of income from being fully taxed in both places. When two countries have a treaty, a person who declares under the right conditions may receive more favorable treatment than the default. Whether it applies, and how, depends on the specific treaty and each person's circumstances, and this is exactly where you should consult a tax professional.
Note: this article deliberately doesn't state specific percentages, thresholds, or filing deadlines, because they vary case by case and over time. Don't take a number you read online and apply it to your own situation.
How is the W-8BEN different from the W-8BEN-E?
The two forms sound almost the same but are for different parties:
- W-8BEN — for foreign individuals. If you sell POD as an ordinary person, this is your form.
- W-8BEN-E — for foreign entities and businesses. If you sell under the name of a registered company, the applicable form is usually the business version.
- Choosing the wrong type can make your declaration incorrect. If you're not sure which category you fall into, confirm with someone knowledgeable before submitting.
Steps to fill out the tax form on the marketplace
Most marketplaces don't make you download a PDF to fill in by hand; instead they have a guided flow (a tax interview) that asks step by step and then generates the appropriate form for you. The information typically requested includes:
- Selecting whether you're an individual or an entity, and confirming you're not a US taxpayer/entity.
- Entering your full name exactly as it appears on your ID.
- Selecting your country of residence — for most readers, Vietnam.
- Entering your permanent address in Vietnam.
- Entering a tax identification number if you have one and if the form asks for it — for this part, consult a professional if you're unsure what to enter.
- Signing to confirm (usually an electronic signature by typing your name) and submitting.
Filling it out accurately, matching your documents, is the most important thing. A mismatch in name or address can get the form rejected and force you to redo it.
What about your tax obligations in Vietnam?
Filing a W-8BEN with a US marketplace is the US side of the story. Whether the income you bring back to Vietnam creates any domestic filing/tax obligation is a separate matter, within the scope of Vietnamese law. The two are distinct; for the part concerning your obligations in Vietnam, you need to research it yourself or ask a domestic tax professional.
One last time, to be clear: this entire article is only meant to explain the concepts so you're less confused when you hit a tax form. It is not tax or legal advice, and it makes no claim about your specific tax obligations. Before making any decision involving money and taxes, consult a trusted tax professional.