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In a nut shell, Spaze, Smashwords must now tax at US source.
The only way around this is either to have someone with US tax and SS numbers upload to Smashwords for you and deal with your returns or to go through the heavy-duty work of claiming exemption. It's a bloody nightmare, mate.
Either way, it's a bind on the indie author because that 30% does count (add in Smashwords regular 18%) and you're almost splitting 50-50, BEFORE any third-party retail claims its 35%-70% sales commission (stores now cleverly and dishonesty call it 'royalty') off the top.
And your Smashwords income is likely to be so low anyway that hard work on the complex tax-exemption proof is all for nothing because the return is not at taxable level on home ground.
Not Smashwords' fault, just the wheels of governent that need your oiling to keep them all in cushy fully-paid and superanuated working order.
My own wee (Canadian-registered) house spent a small fortune on legal and admin fees to gain additional US registration last year to deal direct with the major online ebook stores. But we're dealing well over 120 titles at any given moment, so it was worth it.
For the indie author with just one or a handful of titles? Not so sure. Depends on your personal long-term plan for writing.
Good luck and very best wishes. Neil
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