Virtual Services

Per federal regulations, U.S. taxes are applied to payments to foreign vendors depending on where the services take place, not their permanent residence address. It is important to add, into the text of the Banner invoice, the vendor's physical location during the virtual presentation. i.e., inside or outside the U.S. to the Banner invoice text field when making payment.

If the provider of the service is an international individual (non-U.S. person) who did not enter the U.S. to perform the services, then there are no U.S. tax consequences; use account code 24999.

If the vendor is visiting and is physically inside the U.S. during their virtual presentation, 30% tax withholding will be applied per federal regulations unless treaty benefits are formally requested on an 8233 form or a W-8ECI form is provided.