Assuming a W8-BEN should be obtained (and 1042 filed) when a payment to a foreign vendor is for US-Sourced income:
Does the definition of US-sourced income apply to a UK company working in the UK that consults for a US company? What if they are performing
Alternatively, is there ever a time when a W8-BEN should be collected for a payment to a foreign vendor even when the income may *not* be US-sourced?
Anytime a US person makes a payment to a non-US person, consideration should be given as to whether any of the W-8 forms should be collected. Generally, services performed outside the US do not generate US source income and are not taxable in the US under domestic law. When we represent the payor, we recommend obtaining a W-8BEN in such situations since the IRS has made international
The answer to the question about "virtual marketing" depends on the specific activities, what assets are being used, who owns/operates them, etc.
If in doubt, get the appropriate W-8 form, always.
