This article goes over what tax forms you’ll submit and receive from Vonza, and how the process works.


Overview

If you are a US person or corporation and are paid more than $600 by Vonza, Vonza is required to file a Form 1099 with the IRS stating what we have paid you. To complete this Form 1099, we use the information submitted by Platform owners on the Form W-9.


Please note: If you earn $500 or more on the Vonza platform and have yet to fill out a tax form, your payouts will be held by Vonza until the required tax form is completed.


If you are a foreign person or corporation, the W-8 form informs the IRS that you are not a US citizen or corporation. In this case, Vonza will not file a Form 1099 on your earnings.

If you've already submitted a W-9 or W-8 form in the past, Vonza still requires an updated one. This is because we are updating our systems and records, and must ensure that we have the most accurate and up-to-date information from Platform owners.


If you’re unsure how to fill out a tax form required by Vonza, consult a tax professional or visit the Internal Revenue Service's (IRS) website to learn more. The IRS website provides tax information and services in Spanish, Chinese, Korean, Russian, and Vietnamese. To learn more, visit IRS Tax Tips.


CAUTION: When you earn $100 or more on the Vonza platform, you'll be instructed to fill out a tax form through a banner in your Dashboard. If you earn $500 or more on the Vonza platform and have yet to fill out a tax form, your payouts will be held by Vonza until the required tax form is completed.

 

Vonza Payments 

If you’ve set up Vonza Payments and meet the following criteria, you will be asked to complete a 

Form W-9:

  • You are a U.S. person (including citizens, resident aliens, and entities treated as U.S. persons)
  • You use Vonza Payments, the Monthly Payment Gateway, or mixed payment gateways to collect customer payments
  • Your Platform earned $100 or more during the tax year

If you've yet to fill out a Form W-9 with Vonza, you will receive an email instructing you to fill out your W9 form. 


In January of the following year, you’ll be sent a 1099 form. For earnings made on the Monthly Payment Gateway and Vonza Payments, you’ll receive a 1099 form to the primary owner’s email address. This form is provided by Track 1099, a third party with whom Vonza partners for the preparation and submission of tax forms. 


NOTE: The figure we use for your 1099 is based on how much we paid you during that year, rather than your sales made during that year. This means that because of our payment schedule, sales made at the end of one year may be included in the form for the next year (e.g. if you make a sale on December 20, 2016, and are paid on February 1, 2017,  that payment counts as 2017 earnings).


If you use the Monthly Payment Gateway or Vonza Payments but do not meet the $100 threshold, you will not need to submit a W-9 or receive a 1099.

If you own multiple Platforms and/or earned over $100 as an author or affiliate on someone else’s Platform(s), you may receive multiple W-9 requests and 1099s. Fill out all of the W-9 forms, and include each 1099 separately on your taxes.


Using Custom Payment Gateways

If you use custom payment gateways to collect customer payments, then you are fully responsible for your own taxes and will not submit or receive forms to/from Vonza.

In the case of authors and affiliates, you are responsible for making payments to them, sending tax forms to them if necessary, and handling the reporting


NOTE: If you sell courses, products and services to customers within the EU, you should also be filing EU VAT. Vonza does not assist with this when using custom gateways.


Forms for Non-US Persons

Vonza is required, if certain conditions are met, to file a Form 1099 with the IRS reporting what it has paid to US citizens and corporations. The W-8BEN Form is an IRS form used to prove that you are not a US citizen or corporation. In this case, Vonza will not file a Form 1099 on your earnings.

If you meet the following criteria, you will be asked to complete a Form W-8BEN, Form W-8BEN-E, or Form W-8-ECI (collectively, "a W-8 Form"):

  • You are a foreign person or entity
  • You use the Monthly Payment Gateway or Vonza Payments to collect customer payments
  • Your Platform earns $100 or more during the tax year

These forms, which identify your status as a foreign entity, will be available to the Primary Owner.   

 

 

NOTE: These are general recommendations. Vonza cannot give tax or financial advice and is not liable for any losses or tax liabilities due to actions taken (or not taken) based on these recommendations. Always consult a local tax professional when planning your taxes.