Can I open a Stripe account without an ITIN?

You can create a Stripe account as an international user, but Stripe requires a valid tax ID for US tax reporting. Without an ITIN, Stripe withholds 30% of US-sourced payments under IRC Section 1441. Stripe asks you to complete a W-8BEN form that requires your ITIN. With a W-8BEN filed, your withholding rate drops based on your country tax treaty.

What is the W-8BEN form and why do payment platforms need it?

The W-8BEN (Certificate of Foreign Status of Beneficial Owner) is an IRS form non-US individuals submit to certify foreign status and claim tax treaty benefits. PayPal, Stripe, Wise, and Payoneer require this form under IRC Sections 1441 to 1443. You need an ITIN to complete it. The form is valid for 3 years from signature date.

How much does PayPal withhold without an ITIN?

PayPal withholds 24% (backup withholding under IRC Section 3406) or 30% (NRA withholding under IRC Section 1441) depending on income classification. On $10,000 in earnings, that means $2,400 to $3,000 withheld. With an ITIN and W-8BEN, many tax treaties reduce this to 0% to 15%, saving $1,500 to $3,000 per $10,000 earned.

Does Wise and Payoneer also require an ITIN?

Yes. Wise requires tax identification for US payment receiving features under FinCEN regulations. Payoneer requires an ITIN when you activate the US payment service. Both platforms apply withholding without a valid tax ID. Your single ITIN works across all platforms including PayPal, Stripe, Wise, Payoneer, Square, and Venmo Business.

Can I use the same ITIN for PayPal, Stripe, and other platforms?

Yes. Your ITIN is a single 9-digit tax identification number that works across all US payment platforms. Use the same ITIN to complete W-8BEN forms on PayPal, Stripe, Wise, Payoneer, Amazon, and any platform requiring US tax identification. Your ITIN remains valid as long as you use it on a tax return at least once every 3 years.

How do tax treaties reduce PayPal and Stripe withholding?

The US has tax treaties with 60+ countries that reduce withholding rates on specific income types. For example, the US-UK treaty reduces business income withholding to 0%. The US-India treaty reduces service income to 15%. You claim these benefits by entering the treaty article number on your W-8BEN form. Without a W-8BEN, you pay the default 30%.

What happens if taxes were already withheld from my PayPal earnings?

You can recover over-withheld taxes by filing IRS Form 1040-NR (US Non-Resident Income Tax Return). Report your PayPal and Stripe income, claim your tax treaty benefits, and request a refund for the difference between what was withheld and what you actually owe. The IRS processes refunds in 6 to 12 weeks for non-residents.

Do Amazon sellers need an ITIN for payment processing?

Yes. Amazon requires a valid tax ID for all sellers receiving US marketplace payments. Without an ITIN, Amazon applies 24% to 30% backup withholding on your disbursements. The tax interview process on Amazon Seller Central requires your ITIN to complete the W-8BEN form and set your withholding rate based on your tax treaty.

Updated May 2026

ITIN for PayPal and Stripe 2026: Stop Losing 30% to Withholding

Q: How long does it take to get an ITIN for PayPal verification?

The IRS processes Form W-7 ITIN applications in 7 to 11 weeks. itin.so offers $297 all-inclusive service. As a Certifying Acceptance Agent, itin.so verifies your passport so you never mail your original to the IRS. Apply before you start selling to avoid withholding from the beginning.

PayPal withholds 24% to 30% of US-sourced payments without a valid tax ID. Stripe withholds 30%. On $10,000 in earnings, that means $2,400 to $3,000 lost to withholding. An ITIN for PayPal and Stripe lets you complete the required W-8BEN form, claim tax treaty benefits, and reduce withholding to 0% to 15% depending on your country. The US has tax treaties with 60+ countries that reduce or eliminate withholding on business income and service fees. Under IRC Sections 1441 to 1443 and 3406, payment platforms are legally required to withhold taxes from recipients who cannot provide a valid tax identification number.

Why Do PayPal and Stripe Require a Tax ID?

3 IRS code sections mandate tax withholding on US-sourced payments to non-US individuals. Payment processors comply or face penalties.

IRC Section 1441: NRA Withholding

Section 1441 requires withholding agents (PayPal, Stripe) to withhold 30% of US-sourced income paid to non-resident aliens who have not provided a W-8BEN form. This is the default rate that applies when you have no ITIN on file.

IRC Section 3406: Backup Withholding

Section 3406 requires 24% backup withholding when a payee fails to provide a valid taxpayer identification number. PayPal applies this rate in some cases instead of the 30% NRA rate, depending on income classification.

IRS Information Reporting Requirements

PayPal and Stripe must file information returns (Form 1099-K or 1042-S) with the IRS for every account holder. They need a valid TIN to file these returns. Without your ITIN, they cannot file correctly and must apply maximum withholding as required by law.

This applies whether you sell physical products, digital goods, or provide services as a freelancer. The platform does not set your tax rate. The IRS does, based on the information you provide on your W-8BEN.

How Much Do You Lose Without an ITIN on PayPal and Stripe?

The financial impact of not having an ITIN is significant. Here is what withholding costs at different earning levels.

Annual Earnings	Without ITIN (30%)	With ITIN + Treaty (0%)	Savings
$5,000	$1,500 withheld	$0 withheld	$1,500
$10,000	$3,000 withheld	$0 withheld	$3,000
$25,000	$7,500 withheld	$0 withheld	$7,500
$50,000	$15,000 withheld	$0 withheld	$15,000
$100,000	$30,000 withheld	$0 withheld	$30,000

Note: 0% withholding applies to business profits under most US tax treaties. Some income types (royalties, dividends) have different treaty rates of 5% to 15%. Check your specific treaty at irs.gov/businesses/international-businesses/united-states-income-tax-treaties-a-to-z.

How Do You Complete the W-8BEN Form with Your ITIN?

The W-8BEN form has 3 main sections. You need your ITIN to complete it on PayPal, Stripe, or any other US payment platform.

Part I: Identification

Full legal name (matching your ITIN letter and passport)
Country of citizenship
Permanent address in your home country
Your ITIN in the US taxpayer identification number field
Your foreign tax identification number

Part II: Tax Treaty Claim

Enter your country of residence and the specific treaty article that reduces your withholding rate. For business income, most treaties reference Article 7 (Business Profits) with a 0% rate. For services, Article 14 or 15 applies. The IRS publishes all treaty articles at irs.gov.

Part III: Certification

Sign and date the form. The W-8BEN is valid for 3 calendar years from the signature date. After expiration, you must resubmit on each platform. PayPal and Stripe send reminder emails before your W-8BEN expires.

How Do You Verify Your ITIN on Each Payment Platform?

Each platform has its own process. Here are the specific steps for the 4 major platforms.

PayPal Verification

Log in to PayPal. Go to Settings, then Account Settings, then Tax Information. PayPal walks you through a tax interview. Select non-US individual, enter your ITIN, complete the W-8BEN, and submit. PayPal validates and updates your withholding rate within 3 to 5 business days. PayPal Business accounts follow the same process.

Stripe Verification

In your Stripe Dashboard, go to Settings, then Tax forms and compliance. Stripe prompts you at certain payment thresholds. Enter your ITIN, complete the W-8BEN, and submit. Stripe applies the correct withholding rate within 1 to 3 business days.

Amazon Seller Central Verification

In Seller Central, go to Account Info, then Tax Information. Amazon runs a tax interview asking your tax status, country, and ITIN. Complete the W-8BEN and submit. Amazon validates within 24 to 48 hours. Learn more about ITIN for Amazon sellers.

Wise and Payoneer Verification

Wise requires your ITIN during account setup for US payment features. Payoneer asks for your ITIN when activating the US payment service. Both platforms use your ITIN for IRS reporting compliance.

Which Countries Have Tax Treaties That Reduce PayPal Withholding?

The US has income tax treaties with 60+ countries. Here are withholding rates for business income under the most common treaties.

Country	Business Income Rate	Treaty Article
United Kingdom	0%	Article 7
Canada	0%	Article 7
Germany	0%	Article 7
India	0% to 15%	Article 7/14
Australia	0%	Article 7
Japan	0%	Article 7
Mexico	0%	Article 7
No treaty country	30%	N/A (default rate)

Check the full list of US tax treaties at irs.gov. Even countries without treaties benefit from having an ITIN because it enables filing Form 1040-NR to claim refunds on over-withheld taxes.

What Is the Best Timeline for Avoiding Withholding?

4 steps in the right order prevent withholding from the start.

Apply for your ITIN before you start selling. The IRS takes 7 to 11 weeks to process Form W-7. Apply through itin.so ($297) to start the process. itin.so serves applicants from 150+ countries.
Complete your W-8BEN immediately. As soon as your ITIN arrives, log into PayPal, Stripe, and every platform to submit your W-8BEN. Do not wait for withholding to trigger.
Claim your tax treaty benefits. Research your country treaty at irs.gov. Enter the correct article number and withholding rate on the W-8BEN. Most business income qualifies for 0% under Article 7.
File Form 1040-NR annually. File a US non-resident tax return each year to report income and claim refunds on any over-withholding. Learn about ITIN tax return filing.

Need your ITIN fast?

As a Certifying Acceptance Agent, itin.so verifies your passport so you never mail your original to the IRS. Processing: $297. Processing: $297. Start your ITIN application today.

What Other Platforms Require an ITIN for US Payments?

6 additional platforms require ITIN verification for US-sourced income.

Wise (formerly TransferWise)

Requires ITIN for US payment receiving features. Your ITIN enables a US dollar account with routing and account numbers. See our Wise ITIN account guide for setup instructions.

Payoneer

Asks for ITIN when activating the US payment service. Used widely by freelancers on Fiverr, Upwork, and other platforms.

Square

Requires tax ID for sellers processing US payments. Square applies the same withholding rules as PayPal and Stripe.

Venmo Business

Owned by PayPal and follows identical tax reporting requirements. ITIN verification is mandatory for business accounts.

Shopify Payments

Requires tax identification for US-based payment processing. Shopify routes payments through Stripe, which applies the same W-8BEN requirements.

Etsy

Requires tax ID for sellers with US-sourced income. The Etsy tax interview follows a similar W-8BEN process as Amazon and PayPal.

Your ITIN works across all of these platforms. You can also use it to open a US bank account for receiving payouts. Pair your payment accounts with a Mercury or Relay business bank account for organized financial management.

Frequently Asked Questions About ITIN for PayPal and Stripe

Yes. PayPal is required by the IRS under IRC Section 3406 to collect a valid tax identification number from anyone earning US-sourced income. Without an ITIN, PayPal applies backup withholding at 24% or NRA withholding at 30% on your payments. Providing your ITIN and completing a W-8BEN reduces this to 0% to 15% depending on your tax treaty.

Stop losing 30% of your earnings to withholding. Get your ITIN today. itin.so serves applicants from 150+ countries.

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