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Tax information for sellers on Red Hat Marketplace

Tax information for sellers in the United States

IBM 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.

Tax information for sellers outside the United States

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 varies 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. For example, Canada requires that each seller be registered to sell in Canada, so IBM will collect your Canada tax registration number.

Tax withholding on payments to sellers

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.