Do Foreign Companies Have to Deal with US Sales Tax?
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- Опубликовано: 5 авг 2024
- Are you wondering what creates nexus for international sellers? Do foreign sellers have to pay US sales tax?
In this video, Kexin explains what creates nexus for international sellers, what steps you need to take before you apply for a sales tax permit, and 3 things you MUST NOT DO when setting up to collect sales tax.
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** SALES TAX COMPLIANCE PLAYLIST: **
• Sales Tax Compliance
ADDITIONAL RESOURCES
** Do Amazon Sellers Need to Worry About Sales Tax?: **
• Do Amazon sellers need...
** Where Does a Marketplace Facilitator Have Sales Tax Nexus? **
• Where Does a Marketpla...
** How to Fill Out the SST & MTC Exemption Certificate Forms: **
• How to Fill Out the SS...
** A Step-by-Step Guide to Get an FEIN for International Businesses: **
• A Step-by-Step Guide t...
** Mercury Online Banking: **
mercury.com/
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Thanks for watching! Let us know if you have any questions by commenting below. Need more help with your sales tax? Contact us here - ledgergurus.com/services/sales-tax/ OR download our complete guide to sales tax compliance - ledgergurus.com/portfolio/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/.
We also have a sales tax guide specific for foreign sellers: ledgergurus.com/portfolio/international-sellers-checklist/
Oh My God!!!! Instant subscribe!! After hours of scouting the web for honest advice about e-commerce tax obligations for international sellers selling to the USA, this has to be theee most down to earth and transparent video I've found. My wife and I have started a store on Etsy (good to know they take care of our US taxes, thanks!), but we will eventually open a Shopify store to sell to the US in due course. The tax and duties part scared the crap out of us, but this video really helped clear that up. We will probably have dozens more questions once we open our Shopify store, and we'll definitely be seeking your services, but wow, this video was SO helpful already. Thank You!!!
You are so welcome! We're so happy to help. :)
best video ever, after hours of searching finally someone who gave all details
Glad we could help!
Wow thank you 🙏
Thanks Kexin for the excellent explanation!
Glad it was helpful!
this was incredibly helpful 🙏
Glad it was helpful!
Thank you very much. We appreciate your clear explanation.
You are welcome!
Great vid thank you.
You're welcome
Happy New Year to All at LedgerGurus!
Thank you so much for you channel that I have just come across now and had to subscribe.
I am based in the UK with a print on demand partner based in Los Angeles & Philadelphia who will be full filling all of my online orders and then sending directly to the customers within the US.
Listening to your 3 pitfalls I am not going to charge sales tax, however should I put a disclaimer on my website that all customers are responsible for sales tax within their state?
I have downloaded the document of the 10 steps. Thank you for this.
Kind Regards,
Rahul.
Happy new year to you as well! We are so glad you are here! This video explains dropshipping pretty well: ruclips.net/video/suUqOj3bhvs/видео.html. It’s up to you whether you want to put a disclaimer. Usually when you don’t charge sales tax, customers are responsible for use tax.
Thank you for the valuable information. We are a Hong Kong corporation selling goods in the US. We recently reached NEXUS in a several states and need to start filing and paying sales taxes. Any suggestions on how to open a bank account? Looks like Mercury is currently not opening accounts for the companies outside of the US.. Will very much appreciate your advice. Thank you
Probably the best way to get this and your other sales tax-related questions is to schedule a sales tax consultation with one of our ales tax experts - calendly.com/ledgergurus-sales-tax/
Thanks for the information and for helping me to avoid the pitfall of collecting tax before the threshold. I am starting to sell in the US with Shopify. Are you telling me that I can only ask my customer to pay tax after reaching the threshold in a state? Please confirm. Thanks,
Yes that’s correct. You don’t have any liability to collect and remit tax before you reach the nexus threshold.
@@LedgerGurus Thanks for your info, really helpful for me since I am starting my Shopify store in US from abroad.
However I still have a question regarding the threshold: Suppose that I surpass the limit without I knowing it and keep selling without collecting sales taxes. Would the states eventually notice me that I should start to collect them or I will be noticed in some other ways?
Thanks!
@@anthepowa the states are finding e-commerce sellers in various ways. There’s definitely the possibility that the states will find you somehow and send you a nexus questionnaire and ask you about your sales info to see when or if you pass the threshold.
Hello thanks for making an informative video. I have some questions:
1: if we have non-resident LLC in Florida and we are selling on markeplaces only. We are using 3PL warehouse service in New Jersey & California. Is that means we have physical nexus & we have to register for Sales Tax in New Jersey & California?
2. If we sell goods to businesses & they want reseller certificate, then how to issue Florida reseller certificate without permit, because we do not have nexus eligibily as of now?
Yes, that does mean you have nexus in NJ and CA. You can read more: www.avalara.com/blog/en/north-america/2023/01/nexus-what-to-know-small-business.html#:~:text=For%20example%2C%20having%20inventory%20in,in%20California%20and%20New%20Jersey.
For your second question, generally people ask how to get resale certificates FOR their suppliers, not FROM them, which is what your question seems to be asking. The MTC form allows someone to get a resale certificate without a FL sales tax permit. We have a video about that here: ruclips.net/video/Cn-vsd4HlTE/видео.html
Hi, when you say you need to collect sales tax from the state where you have nexus, does this mean you need to collect sales tax ONLY from that particular state and not any other state you selling your products to??
Yes, you might have nexus in one state but not another
If I'm an international seller, selling on Etsy using a US supplier who ships my product to customers. I am under the nexus threshold. Do I need to register for sales tax in the state of my supplier yet or wait until I reach the threshold level of sales?
Etsy collects and remits sales tax on seller's behalf, so you are good!
So I am Canadian and will be dropshipping via shopfiy to only americans in the US. I will not have a physical nexus or economic nexus, does this mean I don’t need to do anything but start selling?
I know some companies require a resellers certificate, how do I get one of these if I don’t have nexus in any state?
You can start selling without collecting tax, but you will need to pay your dropshipper a sales tax depending on your dropshipper’s nexus. Please refer to our video on dropshipping and filling out SST and MTC form to get answers to your second question :) feel free to comment on those videos if you have questions!
Hello, thank you for presenting this very informative video. I currently sell on Amazon UK and want to expand selling on Amazon USA, I anticipate my total sales across all states to be less than 100k a month which should be under the threshold for all states, in this case does Amazon still collect sales tax on my behalf or is there a way to opt out? Thanks in advance
No, Amazon will still collect sales tax on your behalf. There is no way to opt out.
I am an international seller (I don't live in US) with a Colorado registered business selling goods online to many US states. I do need to register for Colorado sales tax license? I just need to calculate sales tax on the goods sells to Colorado customers, not to other states?
Correct. You should be registered and remitting sales tax in the state of Colorado. Orders shipped to Colorado will then be charged sales tax. Until you cross physical or economic thresholds in other states you won't need to collect anywhere else.
Does this also apply to VAT? I'm not sure if sales taxes are the same as VAT
VAT is essentially sales tax in foreign countries. If you sell into foreign countries you should be checking to see what your tax obligations are in those specific countries.
The threshold for the different states, will it get renew for us after every financial year? I mean let's say I hit $70K sales in California for the year 2022-23, will this threshold starts again from zero in the year 2023-24 or will it keep continuing with my new transactions? and I'll have to start collecting sales tax once I hit $500K sales in CA.
Nexus is determined on a rolling 12 months basis.
Hi,
One more thing, hopefully you can help. These are for the XFL, They are being printed in GA and shipped to TX, the XFL headquarters is in CT. I’m not registered to for resale in TX, GA or CT. Not sure how to handle this? Can you charge me GA or TX sales tax and I will be the end user? Thoughts?
Thank you,
Received the above from my client, can you guide me about this?
We did a whole video specifically on sales tax for dropshippers. You can find it here - ruclips.net/video/suUqOj3bhvs/видео.html
Hello, thank you for your video. My business is registered and located in the UAE and we plan on selling in the US Amazon market. Do I require an LLC company for tax purposes?
I suggest you contact a tax attorney for that question. We only work with sales tax, not income tax.
Hello, I have a LLC company in Delaware for Amazon business, I reside in Turkey. Can I use SST form instead of Resale certificate when negotiating with wholesalers?
Yes. Here's our video on how to fill it out. ruclips.net/video/Cn-vsd4HlTE/видео.html&pp=gAQBiAQB
Hello, thank u very much , if my amazon registered as a foreign, but bow i am going to usa with e2 visa and legal to open job, can i change my foreign amazon to usa amazon? Is ot possible ? Then i will pay taxes to usa by ssn ? or i must register again new one
I’m not sure if you can change your Amazon foreign account to amazon US. But if you do you will need SSN or ITIN and pay tax on your income.
Hello
Thank you for this effort, but I have a question. I have a limited liability company in Wyoming that was created by a registered agent. I am neither a resident non a citizen. Do I have to register for sales tax in Wyoming before I start selling? I am an online seller.
Since that is where your business is considered to be located, yes, you do have to register there.
hi so i live in canada and i dropship from us supplier to us client only and i sell only on ebay .So i dont have to do anything ?
I don't know your complete situation, but maybe not since eBay is a marketplace and is required to collect and remit sales tax for you.
are the sales thresholds cumulative or annual?
just checked, theyre annual
Most states reset every calendar year.
What happens if we don't comply with the economic nexus rule as a foreign dropshipper ? The US doesn't have authority over me in my country so technically speaking they cannot force me to collect taxe for the IRS.... Or am I mistaken ? I will simply put the responsibility on my clients in the terms of my website ....
It’s not the IRS, it’s the individual states, if you have inventory or bank accounts in the US, they might be able to seize your inventory or put a lien on your assets.
Let me explain my case. I'm from south america and I want to start a youtube channel and use it to sell a mentorship course or digital service online. Considering that I will make my content speaking english so my audience kinda be from the US or any other people around the world that speaks english so... Will I have to pay taxes in the countries my audience (who are going to earn my service or course from internet) lives ?
You'll only have to worry about sales tax when you start selling your course or service. Just having a RUclips channel won't require you to pay taxes. When you're ready to start selling, download our 10 Steps of Sales Tax guide. It'll give you a good start. ledgergurus.com/portfolio/10-steps-to-ensure-sales-tax-doesnt-burn-down-your-ecommerce-business/
I have registered LLC in the USA. I will be selling on Amazon. I have been trying to get Florida sales tax permit but it asks for a Social Security number. I do not live in the USA. I do not have SS#. Is there a way to go around it?
We've created a couple resources for this issue. The first is our RUclips video "A Step-by-Step Guide to Get an FEIN for International Sellers" - ruclips.net/video/kJi6Zr0nHQM/видео.html AND our download "5 Steps International Sellers Must Take BEFORE Applying for a US Sales Tax Permit" - ledgergurus.com/portfolio/international-sellers-checklist/
Yes! I would do a paper registration.