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Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 3765
Experience:  20+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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Your advice would be appreciated. We are a small, specialist

Customer Question

Hi, your advice would be appreciated. We are a small, specialist Ltd company supplying a piece of laboratory equipment to a US hospital (product now in evaluation) and have ben advise by UK colleague to fill in Part I lines 1,2,4(corporation), 5 (Active NFFE), 6; Part XXV and Part XXX. Does this seem complete? Thank you, ***** *****
JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?
Customer: I don't think so (no US affiliation and I am the principal director). We might request proforma payment if there are any credit risks. We have other US clients who have not required W-8BEN-E but two have this week... Thanks.
Submitted: 1 year ago.
Category: Tax
Expert:  Barbara replied 1 year ago.

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

I disagree with the advice of your UK colleague. No W-8BEN-E is required if your transaction with the U.S. hospital is for laboratory equipment (a product).

"Any U.S. taxpayer that has non-product related transactions with a foreign entity (FE) must receive a completed Form W-8BEN-E from that FE to determine if the FE is subject to the default 30 percent withholding on payments to FEs or if is the FE is eligible for any reduced withholdings related to an applicable treaty.

Example: USCo purchases product from ForeignCo. Since the transaction is related to the purchase of products, no Form W-8BEN-E is required. While no Form W-8BEN-E is required, information about ForeignCo is normally required for products to clear customs. "

Please let me know if I can assist you further.

Thank you and best regards,