Do Foreign Companies Have A W-9? | Stop The W-9 Confusion

Ad-network readiness check (Mediavine/Ezoic/Raptive): Yes

Most foreign companies don’t use Form W-9; U.S. payers usually collect a W-8 form to record foreign status and apply the right withholding rules.

A U.S. client emails: “Please send your W-9.” You run a company registered outside the United States. You don’t have a U.S. EIN. You’re not sure what you’re meant to certify. That moment is common, and it’s fixable.

This article breaks down what the forms are meant to do, when a foreign company may still end up providing a W-9, and what to send when a payables team is stuck on “we need a W-9 in the file.” You’ll also get a copy-paste note you can send to accounts payable to keep payments moving.

What Form W-9 Is Used For

Form W-9 is a U.S. tax form that a payee gives to a requester. It lets the requester record a name and taxpayer identification number (TIN) for U.S. information reporting on certain payments. The IRS summary page for the form describes it as a way to provide a correct TIN to payers who may need to file information returns. IRS overview of Form W-9.

In plain terms, the W-9 is a U.S.-vendor onboarding document. If a company’s payables system sees a vendor and assumes “U.S. vendor,” it often triggers an automated request for a W-9.

Do Foreign Companies Have A W-9?

Most foreign companies do not provide Form W-9. A foreign company typically documents its status with a W-8 form instead, most often Form W-8BEN-E for entities. The IRS page for W-8BEN-E states that it is used to document a foreign entity’s status for U.S. withholding and reporting purposes. IRS overview of Form W-8BEN-E.

Why the split? The IRS treats U.S. persons and foreign persons differently for tax purposes. The IRS definition page lists who counts as a United States person, including domestic corporations and domestic partnerships, plus certain estates and trusts. IRS definition of a United States person.

If your entity is formed outside the U.S., it usually lands on the foreign side of that line. That’s why a W-8 form is the normal paperwork path.

Why U.S. Clients Ask For A W-9 Even When You’re Foreign

Most “W-9 requests” are not personal. They’re workflow. Here are the main reasons it shows up:

• Vendor onboarding defaults to U.S. vendors. The system may have one checkbox: “tax form on file,” and the only option shown is W-9.
• The requester uses “W-9” as a generic label. Some teams mean “send your tax form” and don’t know the form names.
• The contracting party is unclear. A U.S. subsidiary might be the real vendor, while the email thread is with the foreign parent.
• A prior vendor record exists. If the U.S. payer paid a U.S. entity in the past, their system may still be tied to that profile.

When you treat it as a workflow issue, the fix is usually simple: confirm who the payee is, then give the payer the form that matches that payee.

Which Form A Foreign Company Usually Sends

Foreign entities most often send Form W-8BEN-E. Other W-8 forms exist for different situations, and the correct choice depends on what is being paid and who is receiving the money.

Here’s a practical way to think about the options:

W-8BEN-E For A Foreign Company Receiving U.S.-Source Income

This is the common form when a U.S. business, platform, or payer needs proof that your entity is foreign. It can also be used to claim an income tax treaty rate on certain types of U.S.-source income, if your entity meets the form conditions for a treaty claim.

W-8ECI When The Payment Is Treated As Effectively Connected

Some payments relate to business activity in the U.S. and may be treated as effectively connected income under U.S. tax rules. When that applies, payers may request W-8ECI instead of W-8BEN-E.

W-8IMY When You Are Acting As An Intermediary

Intermediaries, certain flow-through structures, and some financial arrangements use W-8IMY. Many operating companies never need this form.

If you’re unsure which one fits, start by asking the payer what they are paying for: services, royalties, interest, dividends, software licensing, platform payouts, or something else. The payment type drives the withholding and reporting logic on their end.

When A Foreign-Owned Business Might Provide A W-9

A company can be foreign-owned and still be a U.S. person for W-9 purposes. Ownership and formation are different.

These are the most common situations where a W-9 still makes sense:

• You have a U.S. corporation or U.S. LLC as the vendor. If the U.S. entity is the contracting party and the payee, it uses a W-9.
• The payer is buying from a U.S. branch or U.S. office that bills through a U.S. entity. Again, the payee’s status controls the form.
• The payer is paying a U.S. bank account held by a U.S. entity. Many payers tie the tax form to the payee name on the account.

If none of those fit and your entity is formed outside the U.S., pushing a W-9 through can create a mismatch in the payer’s records. That mismatch can show up later as a rejected 1099, a request to “fix your name/TIN,” or a hold placed on payments.

How To Respond When A Client Requests A W-9

Use a short, calm process. It keeps the relationship smooth and saves time.

Confirm The Payee Name In The Contract

Check the signed agreement, the invoice header, and the payment instructions. If the payee is your foreign entity, lead with W-8 documentation.

Send The Right Form With A One-Paragraph Note

Attach your completed W-8 form and add a note like:

• “Our company is incorporated outside the United States, so we certify foreign entity status on Form W-8BEN-E.”
• “If your process asks for a W-9, please file the attached W-8 instead for our vendor record.”

Ask A Direct Question If They Push Back

If the payer insists on a W-9, ask: “Are you paying a U.S. entity in our group, or paying the foreign company shown on the invoice?” That one question often reveals the mix-up.

Table: Common Scenarios And The Form That Usually Fits

This table is a routing tool. It can help you spot when the payer is asking for the wrong document.

Scenario	Payee Status	Form Often Used
U.S. client pays a company incorporated outside the U.S.	Foreign entity	W-8BEN-E
U.S. platform pays royalties to a non-U.S. publishing company	Foreign entity	W-8BEN-E (treaty claim if allowed)
U.S. payer pays for services performed outside the U.S.	Foreign entity	Often W-8BEN-E for documentation
U.S. payer pays income treated as effectively connected	Foreign entity	W-8ECI
Payment flows through an intermediary	Foreign intermediary	W-8IMY
U.S. payer pays a U.S. subsidiary of a foreign parent	U.S. entity	W-9
U.S. bank requests documentation for an account held by a U.S. corporation	U.S. entity	W-9
Payer can’t match vendor name and TIN for a U.S. vendor	U.S. entity	Updated W-9 or corrected TIN

How Paperwork Ties To Withholding And Payouts

Many payables teams worry about withholding. When the payer lacks the right documentation, they can be forced to withhold more than expected or pause payments until their file is clean.

Backup Withholding: A Common Threat In Vendor Emails

Backup withholding is a U.S. system where a payer withholds tax from certain reportable payments when the payee doesn’t provide a correct TIN or doesn’t certify properly. The IRS explains when it applies in Topic No. 307. IRS Topic No. 307 on backup withholding.

If a foreign company is placed in a U.S.-vendor workflow and can’t produce a W-9 with a U.S. TIN, an AP team may jump to “we must withhold 24%.” That usually means the vendor record needs to be set up as foreign, with a W-8 form on file, so the payer applies the foreign-payee rules that match the payment.

Foreign-Payee Withholding: The W-8 Forms Drive The Payer’s Settings

When the payee is foreign, the payer’s withholding obligations depend on the income type and the documentation collected. That is the reason W-8 forms exist and why payers ask for them early.

From your side, the practical goal is simple: give the payer a signed form that matches the payee and matches the payment stream. That keeps the payer from guessing, and it keeps you from payment holds.

Table: Red Flags That Signal A Vendor Setup Mix-Up

Spotting these patterns early can save you a long email thread.

What You Hear	What It Suggests	What To Do Next
“Our portal only accepts W-9.”	Foreign vendor flow is hidden or disabled	Ask for manual onboarding; send W-8BEN-E
“Please enter an SSN.”	They think you’re an individual vendor	Confirm you’re an entity; send W-8BEN-E
“We’ll withhold 24% until we get a W-9.”	They are using backup withholding logic	Ask to set you up as foreign; provide W-8 form
“Send W-8BEN.”	They mixed up the individual and entity forms	Explain W-8BEN-E is for entities
“Check the U.S. person box.”	Portal lacks a foreign status option	Request an alternate workflow
“Your vendor name doesn’t match our file.”	Name variations across invoice and form	Align legal name; add “trading as” note if needed
“We need the same form again for audit.”	They refresh documentation on a schedule	Resend the signed PDF; confirm expiration rules

Copy-Paste Note For Accounts Payable

Use this as-is, then attach your completed form.

“Thanks for the request. Our company is incorporated outside the United States, so we certify foreign entity status on Form W-8BEN-E. Please save the attached, signed form in our vendor file. If your process references Form W-9, that form is used for U.S. persons and U.S. entities; the W-8 form set is used for foreign payees.”

Practical Checklist Before You Send Any Tax Form

• Payee name on the form matches the payee name on the invoice.
• Contracting party in the agreement matches the payee name you’re documenting.
• Form is signed and dated.
• Address lines match your billing details, or you explain the difference.
• If you claim treaty benefits, you only claim what fits your facts and income type.
• You save the exact PDF you sent, so you can resend the same file later.