We buy things from foreign vendors, both individuals and companies. If I understand correctly, products we buy from strictly foreign vendors don't require 1042-S reporting, but products we buy from foreign vendors with U.S. outlets do?

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The key word in your question is “product”—if you are talking about buying product (merchandise) only, then as with U.S. suppliers, the payment is not reportable or withholdable. Payments for parts, materials, merchandise, freight or storage are not subject to withholding/reporting.  

Only be careful that there are not also services involved, say for installation or training your employees.  

But if you are referring only to purchase of products, not services, then whether the supplier has a U.S. outlet does not impact you, since the payment is not subject to reporting/withholding.

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