Guide
When to Use W-9 vs W-8BEN
By Keelstar Team · Updated July 11, 2026
The short answer
Use Form W-9 when the payee is a U.S. person — U.S. citizen, resident alien, or entity formed under U.S. law — and you need their TIN for 1099 reporting. Use Form W-8BEN when the payee is a foreign individual who is not a U.S. person and may need to certify foreign status for withholding and reporting purposes. The payee's tax status determines the form — not their mailing address, currency preference, or where they perform work. When in doubt, ask the vendor to confirm U.S. person status in writing before selecting a form.
The core distinction
Form W-9 is for U.S. persons providing a TIN for domestic information return reporting. Form W-8BEN is for foreign individuals certifying non-U.S. status and claiming treaty benefits where applicable. Using the wrong form means you lack the correct certification for withholding and reporting — a problem auditors and the IRS both flag.
Who completes Form W-9
U.S. citizens, resident aliens, partnerships organized in the U.S., U.S. corporations, U.S. LLCs, trusts and estates under U.S. law, and other U.S. persons. The payee certifies under penalties of perjury that they are a U.S. person. Cross-border workers who meet the U.S. person definition still use W-9.
Who completes Form W-8BEN
Foreign individuals who are not U.S. persons — nonresident aliens performing services, foreign consultants, and individuals receiving U.S.-source income that may be subject to withholding. The form certifies foreign status, country of residence, and applicable treaty benefits. It is not a substitute for a TIN on domestic 1099 reporting.
Decision flowchart for AP
At vendor onboarding, ask: Is the payee a U.S. person? If yes → W-9. If no and the payee is an individual → W-8BEN. If no and the payee is an entity → W-8BEN-E. If the answer is unclear → tax team review before first payment. Document the determination in the vendor record.
- U.S. citizen or resident alien → W-9
- U.S.-formed entity → W-9
- Foreign individual → W-8BEN
- Foreign entity → W-8BEN-E
- Uncertain → escalate to tax
Address and banking are not deciding factors
A vendor with a London address may be a U.S. LLC filing W-9. A vendor with a Miami address may be a foreign individual filing W-8BEN if they are a nonresident alien. Do not infer tax status from geography — rely on the vendor's certification and entity formation documents.
Store and refresh correctly
W-9s should be refreshed on entity changes or per your internal policy. W-8BEN forms expire after three calendar years from signature (generally December 31 of the third year). Track expiration dates for W-8 forms and re-request before making payments with an expired certification.
Frequently asked questions
- Can a vendor choose which form to submit?
- The vendor certifies their status, but you are responsible for requesting the correct form. A foreign person should not submit W-9. A U.S. person should not submit W-8BEN. Reject incorrect forms and request the appropriate one.
- Does a nonresident alien ever use W-9?
- Resident aliens for tax purposes are U.S. persons and use W-9. Nonresident aliens who are not U.S. persons use W-8BEN. The green card test and substantial presence test determine residency — not the vendor's preference.
- What about foreign entities?
- Foreign entities use Form W-8BEN-E, not W-8BEN or W-9. W-8BEN is for foreign individuals. U.S. entities — including U.S. LLCs — use W-9 regardless of foreign ownership.
- Do we file 1099s for foreign persons with W-8BEN?
- Reporting rules differ. U.S. persons with W-9s receive 1099s for reportable payments. Foreign persons may be subject to different reporting and withholding rules depending on payment type and treaty status. Consult your tax advisor for specific payment scenarios.
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Put this into a monitored workflow
W-9 Collector handles this continuously — with reminders and an audit trail.