Hello everyone. I just received an email about a changing in the tax form and I am a bit worried about it: at the moment I can't access to my tax form cause my course is not online yet (and I think it's normal this way). But I'd like to learn more about it, cause is very common that these kind of tax forms are strictly referred to a US system, and it's really hard to fill the form for people living in different countries - Italy, for what concers myself.
It's been taking months to me to create a good course, and I'm worried I won't be able to publish it on Udemy for some kind of problems with the tax form.
Thanks for reaching out. I am happy to assist you with your inquiry about the tax form.
Generally, there are two types of relevant taxes for Udemy instructors: sales tax and withholding tax. Sales tax is paid by the consumer on the purchase of an item (like a course). Withholding tax is a type of tax on income derived from certain types of sales.
For sales tax, Udemy uses factors like a student’s location to determine how much sales tax the student should pay on each transaction. These are the amounts you may see when you click to “see details” on a particular sale in your revenue report.
For withholding: as a US-based company, Udemy has to follow guidance from the US Internal Revenue Service to determine if tax should be withheld from instructors’ monthly payments. To do this, we need to collect tax information to determine if or how much withholding is appropriate (for instance, if an instructor based in Australia is making sales to U.S. students, we may be required to withhold taxes on the payouts resulting from those sales).
Once you begin the submission flow, you’ll see the option to choose whether you are a US or non-US instructor as one of the first selections you make. Depending on what you choose, the platform will guide you through options that are unique to the selection you made as a US or non-US citizen.
If you’re not sure which form to submit or how to answer a question about your tax status, we recommend that you consult with a tax advisor to ensure you’re using the right form.
We can offer some basic information about the types of forms you can fill out via our tax platform:
W-9: used by U.S. individuals and entities to certify their Tax ID number
W-8BEN:used by non-U.S. individuals to certify that they are a beneficial owner or a financial account-holder, and claim treaty benefits (Learn more).
W-8BEN-E:used by non-U.S. entities to certify they’re a beneficial owner or a financial account-holder, and claim treaty benefits
Here are some links with more information about submission tax form: