Yes receipt of w8 is required to document the residential status of the payee.If not furnished by the payee backup withholding at 30 percent would beapplicable. Inform the vendor about the importance of the form and ask them tofill and provide the form.Inventory or goods are not subject to withholding generally unncessarilybecause of not receiving this form you may be obligated to do the withholdingtax compliance.