Apple App Store Developers in Bosnia and Herzegovina Face Unique EIN Requirements
Apple requires developers receiving U.S.-sourced payments to submit a Form W-8BEN along with either a U.S. Taxpayer Identification Number (TIN) like an ITIN or an Employer Identification Number (EIN). For developers in Bosnia and Herzegovina, this presents a specific challenge: obtaining a U.S. EIN is necessary to avoid a 30% withholding tax on their earnings. Unlike U.S. residents who can apply online and receive an EIN within days, non-residents face a more complex and lengthy process. This difference in application methods and timelines is a primary friction point for international developers seeking to comply with U.S. tax regulations for their App Store revenue.
When You Need an EIN as an Apple Developer from Bosnia and Herzegovina
An EIN becomes a requirement for Apple App Store developers from Bosnia and Herzegovina primarily when Apple's payment processing systems flag the need for a U.S. TIN to ensure correct tax withholding. When you submit your tax information to Apple, the platform will prompt you to provide either an ITIN or an EIN. Without one of these U.S. tax IDs, Apple will default to withholding 30% of your earnings, as stipulated by U.S. tax law for foreign individuals and entities without a valid TIN. This is to ensure that U.S. tax obligations on U.S.-sourced income are met. Even if your business operations are entirely outside the U.S., the income generated from U.S. customers through the Apple App Store is considered U.S.-sourced, triggering these tax reporting requirements.
Required Documents for Non-Resident EIN Applications
To apply for an EIN as a non-resident from Bosnia and Herzegovina, you will need specific documentation. The primary document is Form SS-4, the application for an Employer Identification Number. This form requires detailed information about your business, including its name, address, and the type of entity. Crucially, as a non-resident responsible party who likely does not have a U.S. Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), you must correctly indicate this on the form. Specifically, on line 7b of Form SS-4, you should write 'Foreign' instead of an SSN. You will also need a valid government-issued identification document for the responsible party, typically a passport. If your business is registered in the U.S., such as a U.S. LLC, you will also need your business formation documents. It is also common to need a U.S. business address, which can be obtained through mail forwarding services if you do not have a physical presence in the U.S.
The EIN Application Process for Non-Residents
The process for obtaining an EIN as a non-resident from Bosnia and Herzegovina differs significantly from the online method available to U.S. residents. Since you likely do not have an SSN or ITIN, you cannot use the IRS's online EIN application portal. Instead, you must apply by fax or mail using IRS Form SS-4. After completing and signing Form SS-4, you will fax it to the IRS at the number specified in the form instructions for international applicants. The IRS will then review your application. Processing an EIN application for non-residents via fax typically takes between 3 to 5 weeks. If you mail the application, the timeline can extend further. Once approved, the IRS will issue your EIN via mail or fax.
Common Mistakes for Apple Developers from Bosnia and Herzegovina
Apple App Store developers from Bosnia and Herzegovina often encounter specific pitfalls when applying for an EIN. A frequent error is attempting to use the online application portal without an SSN or ITIN, which will result in an automatic rejection. Another common mistake is incorrectly filling out line 7b of Form SS-4; it must state 'Foreign' if no SSN or ITIN is held by the responsible party, not leave it blank or enter inapplicable information. Some developers may also misunderstand which entity type to select on Form SS-4, especially if they are operating as a sole proprietor without formal U.S. business registration. Ensuring that the responsible party's name on Form SS-4 precisely matches their passport is also critical, as discrepancies can lead to delays or rejections.
How a Certified Acceptance Agent (CAA) Streamlines the Process
Applying for an EIN as a non-resident can be time-consuming and complex. Utilizing a Certified Acceptance Agent (CAA) can significantly expedite and simplify this process. A CAA is an individual or entity appointed by the IRS to help non-residents obtain an EIN. As a CAA, itin.net can verify your identity and information directly, and then submit the application on your behalf. This often allows for faster processing, potentially reducing the timeline from weeks to just a few business days, depending on IRS workload. The CAA acts as an intermediary, ensuring that Form SS-4 is completed correctly and that all necessary supporting documents are included, thereby minimizing the risk of errors that could delay your application. This service is particularly valuable for those in Bosnia and Herzegovina who need their EIN promptly to avoid tax withholding issues with Apple.
Next Steps After Obtaining Your EIN
Once you have successfully obtained your EIN, you can submit it to Apple through your developer account portal. This will ensure that your U.S.-sourced income is taxed at the appropriate rate, likely lower than the default 30% withholding, especially if the U.S.-Bosnia and Herzegovina tax treaty benefits apply. With your EIN in hand, you can also proceed with opening a U.S. business bank account, which is often a prerequisite for receiving payments efficiently and managing your finances. The next logical step is to review the pricing for EIN services or contact itin.net to discuss your specific needs and ensure a smooth application process.
Practical tips
- Ensure the responsible party's name on Form SS-4 exactly matches their passport.
- On Form SS-4, line 7b, write 'Foreign' if the responsible party has no U.S. SSN or ITIN.
- If you are a sole proprietor without a formal U.S. business structure, indicate this clearly on Form SS-4.
- Submit a clear, legible copy of the responsible party's passport with your faxed or mailed Form SS-4.
- Consider using a Certified Acceptance Agent (CAA) to expedite processing and ensure accuracy.
Frequently asked questions
Can I apply for an EIN online from Bosnia and Herzegovina?
No, if you are a non-resident of the U.S. and do not have an SSN or ITIN, you cannot use the IRS's online EIN application portal. You must apply via fax or mail using Form SS-4.
How long does it take to get an EIN as a non-resident?
For non-residents applying via fax, the typical processing time for an EIN is 3 to 5 weeks. Mailing the application can take longer. Using a Certified Acceptance Agent (CAA) can significantly speed up this process.
What is the difference between an ITIN and an EIN for Apple developers?
An ITIN (Individual Taxpayer Identification Number) is for individuals, while an EIN (Employer Identification Number) is for businesses. Apple accepts either for tax reporting, but an EIN is generally preferred for business operations and opens doors to services like opening a U.S. bank account.
Do I need a U.S. business address to get an EIN?
Yes, you generally need a U.S. address listed on Form SS-4. This can be a physical U.S. business address or a mail-forwarding service address if you do not have a physical presence in the U.S.
Will the U.S.-Bosnia and Herzegovina tax treaty affect my EIN application?
The U.S.-Bosnia and Herzegovina tax treaty primarily affects the withholding rate on your income, not the EIN application process itself. Having an EIN helps you claim treaty benefits by providing a U.S. tax ID to Apple.
What happens if I don't get an EIN and submit my W-8BEN to Apple?
If you do not provide a valid U.S. TIN (like an EIN or ITIN) when prompted by Apple, they will be required to withhold 30% of your U.S.-sourced income. Obtaining an EIN allows for proper tax treatment and potentially lower withholding.
