TABLE OF CONTENTS


Disclaimer: Lulu employees are not tax professionals and cannot provide tax advice. We recommend you carefully research tax requirements for your locale and consult a tax professional.

 

What is Revenue and Tax Withholding?


All creator revenue that meets the true and legal definition of a royalty is subject to withholding.


Only books with Lulu-owned ISBNs are subject to US tax withholding. If you own your own ISBN, your earnings are Other Revenue, not Royalties, and are not subject to US tax withholding.


U.S. Domestic entities or individuals:


  • A US Domestic Entity is an individual, company or organization that typically (but not always) resides in the United States and is required to pay taxes to the government of the United States.
  • Complete and submit a W-9 form for Lulu to keep on file. A properly completed W-9 form provides your Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN), or Federal Employer Identification Number (FEIN).
  • With a valid W-9 form on file, your withholding rate is 0%. If we have no W-9 form on file, your withholding rate is the default backup withholding rate for U.S. domestic entities as set by the Internal Revenue Service of the United States; currently this rate is 24%.


Foreign entities or individuals:


  • A foreign entity is an individual, company or organization that typically (but not always) resides outside of the United States and primarily pays taxes to a government other than the United States.
  • Withholding is waived when your published material is delivered, either physically or electronically, outside the United States.
  • When your published material is delivered, either physically or electronically, within the United States, the Royalties earned on these sales are subject to US withholding.
  • Non-US Lulu authors should complete and submit a W-8BEN form to remain on file with Lulu. A properly completed form provides us with your US, or non-US tax identification number and assigns you to a Resident Country.
  • With a valid W-8BEN form on file, your withholding rate is the percentage defined in the tax treaty between the U.S. and your Resident Country as appropriate for royalties. These rates vary by country.
  • Without a valid W-8BEN form on file, your withholding rate is the default backup withholding rate for non-US individuals or entities as set by the Internal Revenue Service of the United States. Currently this rate is 30%.


How do I submit a W-9 or W-8BEN Tax to Lulu?


You can find a W-9 or W-8BEN form on the United State Internal Revenue Services website.


The information on your submitted tax forms must match the payee information you entered during project creation.


US Tax Payers:


You may download, print, complete and upload your form into your Payee profile within the Publishing Tool. The tax form upload option is located below your payee information.


You may also mail or fax the completed and signed W-9 form:


Mail:


Attn: Creator Revenues

Lulu Press, Inc.

627 Davis Dr.

Ste. 300

Morrisville, NC 27560


Fax:


919-459-5867


Non-US Tax Payers:


When a payee is considered a non-US resident and their book includes a Lulu ISBN, the Internal Revenue Service requires Lulu to withhold US income taxes on any sales delivered to the US. The standard tax rate for these sales is 30%. To apply reduced tax treaty rates (if available) you must submit a completed W-8BEN form (or W-8BEN-E for non-individuals).


You may download, print, complete and upload your form into your Payee profile within the Publishing Tool. The tax form upload option is located below your payee information. .


You may also mail or fax the completed and signed W-8BEN form:


Mail:


Attn: Creator Revenues

Lulu Press, Inc.

627 Davis Dr.

Ste. 300

Morrisville, NC 27560

USA


Fax:


+1-919-459-5867

 

Why do some of my books have withholding, while others do not?


Only books with free, Lulu-owned ISBNs are subject to withholding. If you purchased and registered your own ISBN, your earnings are Other Revenue, and are not subject to US income tax withholding.

 

Why are only part of my creator revenues being withheld?


Only the subset of creator revenues which meet the true and legal definition of a royalty are subject to withholding.

 

Why do I have to enter my tax ID number information?


Your royalty payments are US taxable income. Lulu must report all earnings to the US Internal Revenue Service.

 

Can I enter a corporate tax ID number instead of a personal one?


You may use a corporate name and tax identification number when you provide your remittance address. We report your earnings under the business number and name instead of your personal name and tax number. If you do not file a business tax return, please use your personal name and tax identification number.

 

What is the withholding rate for foreign entities?


With a valid W-8BEN form on file with Lulu, your withholding rate is set at the percentage defined in the tax treaty between the U.S. and your Resident Country as appropriate for royalties. These rates vary by country. Without a valid W-8BEN form on file, your withholding rate is 30%.

 

What about treaty benefits?


To better understand tax treaty rules and requirements, please review this Tax Treaty Overview. If you have a complete and valid W-8BEN on file at Lulu with a valid Individual Taxpayer Identification Number (ITIN) or an Employment Identification Number (EIN) then you can claim Tax Treaty Benefits


An example of a W-8BEN is included in the attached files.


Annual Tax Forms


Lulu will mail to the address on file the applicable annual tax form:


US residents: The 1099 Tax forms are mailed by January 31 of the following year. For example, a 1099 will be mailed by January 31, 2021 for revenue paid in 2020.

Non-US residents: The 1042S forms are mailed by March 15 of the following year. For example, a 1042S will be mailed by March 15, 2021 for revenue paid in 2020.


You can check your payments by visiting your Sales & Payments in your Lulu account.