ITIN for Etsy and eBay Sellers: What International Marketplace Sellers Need (2025–2026)

International sellers on Etsy and eBay frequently get flagged for "tax information required" — and many don't know what they actually need to provide. The answer depends on your business structure, your sales volume, and what the platform is asking for.

This guide clarifies the ITIN question for international sellers on Etsy, eBay, and similar marketplaces — including when you need one, when you don't, and how to get sorted quickly.

Why Platforms Ask for Tax Information

U.S. marketplaces are required by the IRS to collect tax information from sellers for two reasons:

1. Information reporting: If a seller receives payments above reporting thresholds, the platform files an information return (Form 1099-K) with the IRS and sends a copy to the seller.
2. Backup withholding: If a seller doesn't provide a valid TIN, the platform may be required to withhold 24% of payments (backup withholding) and remit it to the IRS.

For U.S. sellers, the tax ID is a Social Security Number (SSN) or EIN, provided via Form W-9.

For non-U.S. sellers, the relevant form is Form W-8BEN (individuals) or W-8BEN-E (entities). The W-8BEN certifies foreign status and may include a TIN if you have one.

Do You Actually Need an ITIN?

The answer depends on your sales volume, country, and platform.

If you have no U.S. tax return obligation and your country has a treaty: You may be able to provide Form W-8BEN without an ITIN. Some platforms accept W-8BEN without a TIN for sellers in treaty countries who don't exceed reporting thresholds. In this case, the platform reduces or eliminates withholding based on treaty.

If the platform requires a TIN to release funds: Even if you technically don't owe U.S. tax, the platform's compliance team may require a TIN before releasing your earnings. This is a platform policy, not always a strict legal requirement. An ITIN solves this problem definitively.

If backup withholding has been applied: The platform withheld 24% of your payments. You need an ITIN to file Form 1040-NR and claim a refund of any withholding you're not legally liable for.

If you're forming a U.S. LLC to sell: Your LLC needs an EIN (for the entity). You personally may need an ITIN (for the individual owner's filing obligations). See the foreign LLC ITIN guide for details.

Etsy Specifically

Etsy collects tax information through its Legal Entity form in Seller Settings. For non-U.S. sellers, Etsy accepts Form W-8BEN.

Etsy follows the IRS 1099-K reporting thresholds:

• For 2025 and beyond: $600 total sales in a calendar year (IIJA threshold reduction is being phased in; verify current threshold at the time of filing)
• For sellers below the threshold: W-8BEN may be accepted without a TIN depending on the situation

If Etsy's payment system flags your account as requiring a U.S. taxpayer ID (which happens when Etsy classifies your account as potentially U.S.-based due to a U.S. address or payment method), an ITIN resolves it.

eBay Specifically

eBay's Managed Payments system (now the only payout method) collects tax information through the seller account settings. International sellers provide W-8BEN.

eBay requires the W-8BEN to include a TIN in certain situations — particularly:

• Sellers with a U.S. business address
• Sellers with U.S. bank accounts linked for payouts
• Sellers with annual payouts above reporting thresholds

eBay applies backup withholding (24%) if required tax information is not provided. The withholding is reported on Form 1042-S (for foreign persons) or Form 1099-K (if classified as a U.S. person).

If eBay has already withheld from your payouts, you need an ITIN to file a 1040-NR and claim a refund of any over-withheld amounts.

Other Platforms: The Same Principles Apply

Redbubble, Society6, Merch by Amazon (different from Amazon FBA), Gumroad, Patreon, and similar creator-economy platforms follow the same general framework:

• They collect W-8BEN or W-9 from sellers
• They withhold if valid tax information isn't provided
• They issue 1099-K (U.S. persons) or 1042-S (foreign persons) for reporting

An ITIN provides a valid TIN for your W-8BEN across all of these platforms simultaneously. One ITIN solves the tax information problem for every U.S. platform you sell on.

The ITIN Application: Which Route Applies to Marketplace Sellers

If you have a U.S. LLC and file a 1040-NR: Use W-7 Reason b. Attach Form 1040-NR. This is the standard pathway for sellers with U.S. business income.

If you receive passive marketplace income with withholding applied: Use Exception 1(a) (for income reported on K-1 from partnership/LLC) or Exception 1(b) (for backup withholding on interest/payments). Provide documentation from the platform (Form 1042-S or 1099-K showing withholding).

If the platform just needs your TIN for W-8BEN: You'll need to establish a qualifying reason for the ITIN. Providing a 1099-K or withholding statement from the platform is the most common supporting document.

How It Compares to Amazon FBA

Amazon FBA sellers have a slightly different situation because Amazon has its own Marketplace Facilitator framework and specific tax withholding procedures for non-U.S. sellers. The Amazon FBA ITIN guide covers that in detail.

The core difference for Etsy/eBay sellers:

• Amazon's seller program has more formal TIN collection procedures built into onboarding
• Etsy and eBay are more flexible with W-8BEN submissions but still apply backup withholding if required

Shared advice: Get the ITIN before backup withholding accumulates. Claiming refunds for multiple years of over-withholding is time-consuming and requires filing multiple 1040-NR returns. An ITIN applied for proactively eliminates the problem.

Do You Need a U.S. LLC to Sell on These Platforms?

No. You can sell on Etsy and eBay as an individual (sole proprietor) from outside the U.S. The U.S. LLC is an option that some sellers use for liability and banking reasons, but it's not required.

If you sell as an individual without a U.S. LLC:

• No EIN needed for the business
• ITIN may be needed if you have a U.S. tax filing obligation (effectively connected income) or if backup withholding has been applied

If you sell through a U.S. LLC:

• LLC needs EIN
• You (the owner) likely need ITIN
• File 1040-NR (or use Exception 5 pathway if no return is required)

Non-U.S. marketplace seller needing an ITIN? We work with international sellers across all platforms. [Get started](/apply).