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General > New tax rules for non-U.S. authors on KDP and CreateSpace

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message 1: by M.A. (new)

M.A. Demers | 62 comments If you are considering signing up with KDP or CreateSpace, and are a non-U.S. author, you need to know this BEFORE you set up your account: http://mademers.com/globalindieauthor...


message 2: by Anca (new)

Anca | 2 comments the link doesn't work, may you update it?


message 3: by M.A. (new)

M.A. Demers | 62 comments Hi Anca,

I just clicked on the link and it worked. But here it is again:

http://mademers.com/globalindieauthor...

Hope that works.
Michelle


message 4: by Jeanne (new)

Jeanne Bannon (goodreadscomjbannon) | 5 comments You will need a W8-Ben form. I had to hire a tax lawyer to help me with this.


message 5: by M.A. (new)

M.A. Demers | 62 comments Jeanne,

Once you have taken the tax interview, Amazon's system now auto-generates the form W-8BEN.

Michelle


message 6: by Jeanne (new)

Jeanne Bannon (goodreadscomjbannon) | 5 comments Wow. They really made it easy.


message 7: by M.A. (new)

M.A. Demers | 62 comments Easy, yes, but one still needs to understand the questions one is being asked. For example, you are asked to check a box that says you have read the relevant tax treaty and affirm you are eligible for the treaty benefits. How many authors do you think actually read the relevant section of their tax treaty before they check that box? I would suspect 1%, if even that many.


message 8: by Jeanne (new)

Jeanne Bannon (goodreadscomjbannon) | 5 comments I do remember seeing and reading the tax info and I was happy to have already taken care of getting my US tax ID number. I still like having that physical piece of paper. One publisher asked that I get one for another book before sending me a contract.


message 9: by Noorilhuda (last edited Jun 16, 2015 11:47PM) (new)

Noorilhuda | 10 comments DHL Pakistan over-charging customers?

DHL Corporation has a contract with Amazon / CreateSpace to handle all their deliveries.

I placed two orders on CreateSpace.com/ Amazon.com (U.S.) within a span of two weeks - paperback proof versions of The Governess - and am being asked by DHL Pakistan (Islamabad office) to pay double money for a less costly / and lesser weight package of the same book!

Order no. 1: ‘Urgent’ delivery order placed on 28th May (CreateSpace Amazon order #91180852) shipped and received by me in Pakistan via DHL Corporation on 31st May 2015. (DHL Invoice number: D01371785; HWB number: 7576625011)

DHL Pakistan (Islamabad office) asked me to pay extra money PKR 670 ($7) explaining that while Amazon asked me to pay for shipment 'to' Pakistan, DHL has to pay for charges 'in' Pakistan to Civil Aviation Authority (air service head organization) and since DHL paid on my behalf, I have to pay DHL $7.

The book weight on DHL receipt was recorded at ‘0.9’ (pages 535) and I had already paid Amazon $42.30 (item cost: $7.30; Freight charges: $35/-; total invoice value: $42.30)

DHL shipment billing receipt shows the following:
Government Dues = PKR 71/-
CAA charges = PKR 70/-
Delivery order + handling = PKR 65/-
Inbound Processing Fees = PKR 400/-
General Sales Tax @16% = PKR 64/-
Total = PKR 670

I did pay the amount (PKR 670 or $7) to DHL Islamabad, Pakistan.

Order no. 2: ‘Expedited’ delivery order placed on 11th June (CreateSpace Amazon order #92449570) shipped and received at DHL Pakistan Islamabad office on 15th June. (DHL invoice number: D01380649; HWB number: 7576631532)

The book weight on DHL receipt is recorded at 0.8 (pages 525) and I have paid Amazon $26/- total for shipment (including $7/- for book)

DHL Islamabad office now wants me to pay them PKR 1190 ($12). They say the rate of dollar has increased! (complete nonsense). Also, the manager Zafar Malik said that DHL Pakistan has to pay CAA weight charges and it rounds up those charges on all customers equally, so when they get 100 pounds in package weight in air travel, it costs DHL more, so it costs the customers more (which sounds unfair to me, why am I paying because people are sending less packages via DHL?). Their new receipt shows the following charges:

Government Dues = PKR 328/-
CAA charges = PKR 100/-
Delivery Order + handling charges = PKR 300/-
Inbound Processing Fee = PKR 400/-
General Sales Tax @16% = PKR 64/-
Total = PKR 1192/- ($12/-)

As you can see, DHL Pakistan (Islamabad office) is charging me more for a package that has cost me less to get from U.S. (and is of less weight than before!) The office said they can waive off ‘delivery order + handling charge’ but that can only be done by service/ custom handlers not DHL ISB manager or reception (I was asked to wait 30 minutes before hearing this reply!) Only in Pakistan!

I have sent an email to CreateSpace/Amazon and DHL Corporation for explanation. But DHL Pakistan should explain what ‘Government Dues’ mean? - GST and inbound processing cover the customs duty and taxes, so DHL is asking me to pay more for less, and that too for charges that have nothing to do with government taxes!

Has anyone else experienced something similar in their host countries?


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