PayPal tax info for foreigners

[eden21]

Hello everyone! 
I was hoping someone could help me about tax info for PayPal. As you know now we required to put our tax info on PayPal. I am living in Bosnia and Herzegovina and as a non US person we already fill in W8 BEN form and Zazzle pays taxes in our name (if thats correct way to say it). So we already pay 30% of our earning to taxes. I really dont know if I am suppose to choose yes or no to this question: Is the account holder a U.S. entity, U.S. citizen or U.S. person under U.S tax law?

And does this mean we will need to pay additional taxes on top of our 30% we re already paying?

I would really appreciate any kind of information. 

[idraw]

Some of your tax questions are answered here—

https://help.zazzle.com/hc/en-us/articles/222706728-W-8-Forms

found the following link in PayPal help, you need to login to access it.

”Please go to the new PayPal Statements & Tax Center. Merchants, please go to your Tax Statement Page”

you may want to call or email PayPal for more specific answers.good  luck.

[eden21]

I have read all articles and posts related to tax but as I have stated before I do not understand law terms at all so It is pretty confusing. Paypal refused to help by saying that I should fill in legal forms by myself. 

[idraw]

To try to help you further--
I did a general internet search about your question---
What are considered US entities?
.. a U.S. entity is a firm incorporated in the United States (or an unincorporated U.S. firm with its principal place of business in the United States) that is controlled by U.S. citizens or by another U.S. entity.

us citizen
https://americansoverseas.org/en/knowledge-centre/when-are-you-a-us-person-for-tax-purposes/when-are...

The term ''United States person'' means: A citizen or resident of the United States. A domestic partnership. A domestic
corporation. Any estate other than a foreign estate.Jul 26, 2022

Who is not a U.S. person?
The federal definition of a “foreign person/national” is a person who is NOT: Granted permanent U.S. residence, as demonstrated by the issuance of a permanent residence card, i.e., a "Green Card" Granted U.S. citizenship.

What is a non U.S. person for tax purposes?
If you are not a U.S. citizen, you are considered a nonresident of the United States for U.S. tax purposes unless you meet one of two tests. You are a resident of the United States for tax purposes if you meet either the green card test or the substantial presence test for the calendar year (January 1 – December 31).

You said you are a non US citizen so the above information may help you.

I hope someone with more specific knowledge and experience with your question can help answer your questions.

[Sara_H]

As you are the Paypal account holder, and not a US citizen, I would answer all questions honestly and I would suggest talking to a tax specialist in your country. Paypal is a totally different beast than zazzle and where tax is concerned, it's better to get the right help as idraw said.

[waterart]

If you don't have a business in the US or conduct business in the US (selling on Zazzle is not considered conducting a business in the US), and are not a US citizen or permanent resident of the US or any other type of US resident who may be required to pay taxes in the US,  the answer to the question is "no"

[Fizzy · Accepted solution]

What @waterart said. Regarding your tax question. In most countries (presumably in yours too), you'll have to pay income tax on your earnings. Your Zazzle earnings are part of your overall income. So yes, you'll have to potentially pay taxes on that. Check with your local tax authority. They should be able to help you out with that.

[eden21]

Thank you guys so so much!! Your advuces have been very helpful

[UlyssePixel]

I live in a European western country that has signed a double tax treaty with the USA. As the name say it, this kind of treaty avoid paying tax in both countries. In my case I pay 0% taxes in the USA, but I pay a huge amount of taxes in my country (50% on the benefits).

In treaties with other countries, I have to pay taxes in the foreign country; in that case I would still need to pay taxes in my country but MINUS the taxes I already pay in the foreign country.  

The issue for you is that it seems there is no double tax treaty between the USA and Bosnia Herzegovina. So, you will have to check with the tax’s authorities of your country.