Tax information for sellers on Red Hat Marketplace

IBM tax information for Red Hat Marketplace

IBM’s tax considerations in various countries with respect to the Red Hat Marketplace Digital Listing Agreement.

JurisdictionIBM Tax Information
United StatesIBM is registered for sales and use tax in all U.S. states where such tax is imposed, (including the District of Columbia, U.S. territories: Guam, Virgin Islands, Puerto Rico), and most U.S. local taxing jurisdictions. As a marketplace facilitator, IBM will bill, collect and remit tax on all applicable goods and services sold through the marketplace. IBM will also add applicable tax to the Marketplace Facilitator Fee for US vendors.
CanadaIBM Canada is registered for indirect tax (GST, HST, PST, Quebec sales tax) in all Canadian provinces. Each partner will appoint IBM Canada as billing agent. As a billing agent, IBM Canada will bill, collect and remit tax on all goods and services sold through the marketplace to Canadian customers. IBM Canada will issue invoices to Canada-based vendors for billing agency fee plus Ontario HST.

Tax Terminologies

  • VAT: Value Added Tax
  • TRN: Tax Registration Number
  • B2B: Business to Business transactions
  • B2C: Business to Consumer transactions

Non-US vendor tax registration status

Outside the United States, IBM will collect tax registration numbers (TRN) from you in certain countries, where required, to validate your status as a business-to-business (B2B) provider. In most countries this is associated with value added taxes (VAT) or goods and services tax (GST), but the name and format vary by country. The collection of this TRN is based on the headquarters address you provide to IBM for the legal entity you are doing business with IBM.

IBM will also collect a tax registration number from you for other countries as required in order to comply with tax laws for selling in those countries.

Tax withholding on payments to you

IBM may be required to withhold corporate income tax from payments to you if your legal entity is outside of the United States. This withholding is determined by the US Internal Revenue Service Form W8 that you provided to IBM. The withholding rate varies by country.