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Refunding Overpaid Invoices to Foreign Customers: W-8 BEN-E Requirements
March 27, 2024
Q. We incorrectly invoiced our foreign customer and the invoice was paid in full. We now need to issue the customer a refund because the incorrect invoice overstated the actual agreed amount that was due per the contract. As the funds we received is considered as "not earned income", are we required to have the customer complete the W8 BEN E prior to returning the funds?
A.
Answered by IOFM's third-party tax experts.
No, because the return of the customer's own money is not income, under the…
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