Foreign Entity Defined:

An entity is considered foreign if it is created or organized outside the United States. This includes entities that may have operations in the United States, but the parent company is organized outside the United States. Depending on the type of payment, all payments made to or on behalf of a foreign entity are generally subject to income tax withholding unless specifically exempted either by U.S. tax law or an income tax treaty. Generally, payments not exempt from withholding are subject to 30% federal income tax withholding, in accordance with IRS regulations. 

If the business is a foreign entity, they should not fill out the Vendor Authentication Form. Instead, they should refer to the IRS instructions and forms for foreign businesses found on the IRS website.

Consider the following, when choosing the proper W-8 form to use:

• Form W-8BEN (use if other W-8 forms are not applicable)
• Form W-8ECI – Applicable if the foreign entity has a trade or business in the United States
• Form W-8IMY – Applicable if foreign entity acts in the capacity of a custodian, broker, nominee or any other person that acts as an agent for another person
• Form W-8EXP – Applicable primarily when the foreign entity is a foreign government, foreign bank, foreign tax-exempt organization or foreign foundation

After completion of the required W-8 form: 

• For Non-P.O. Suppliers- Have the supplier fax (850-644-8137) or mail the completed/signed applicable W-8 form to Disbursement Services at 5607 University Center A, Tallahassee, FL 32306-2391.
• For P.O. Supplier - Have the vendor mail the original signed applicable W-8 form to Procurement Services at A1400 University Center, Tallahassee, FL 32306.

Note: The Supplier Relations team will check all the necessary resources to ensure no federal or state restrictions exist on the foreign entity before we enter them in to the University's supplier file.

What do I do if a foreign entity objects to FSU’s terms and conditions?

If a foreign business takes exception to any of the University’s Purchase Order terms and conditions, once a P.O. has been issued to them, they should immediately contact Procurement Services and relay the particular term(s) and condition(s) that they take exception to so that we can determine whether it is something the University would be willing to either waive, change or not agree to. The same goes for any U.S. Business or individual that receives a purchase order from Florida State University.

For any further questions regarding Foreign Vendors, please contact the appropriate department listed below:

• Foreign P.O. Suppliers- Contact Procurement Services at 850-644-6850
• Foreign Non- P.O. Suppliers- Contact Disbursement Services at CTL-APVendors@fsu.edu
• Non-Resident Aliens - Contact Payroll Services at 850-645-7261