Does a US vendor providing services in Canada need to provide us with a W-9? Is 1099 reporting required?

October 26, 2018

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It depends.  If the vendor is a U.S. person, it is subject to the standard Form 1099 rules.  If the vendor is a non-U.S. person, reportable payments of U.S. source income are subject to 30% withholding absent a documented exemption and are reported on Form 1042-S.  Services income is sourced based on where the services are provided.  Income for services provided in Canada by a non-U.S. person are not subject to U.S. tax withholding or reporting, but you must establish that the vendor is…

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