How to handle taxes when dropshipping from the US to the US as a Canadian ?

New Member
1 0 0


I have a Canadian company and I'm now opening dropship accounts with US suppliers to target the US market. Which means I sell their products on my website, and once product is ordered, I go back to them, buy the product and they ship it for me with my Canadian company name on the shipment. 

My question; How do I handle the sales taxes? As a Canadian company selling in the US, the US customers would generally pay the customs fees & taxes, but since it never cross the border, I wonder how to deal with it. 

Any help please? 

Shopify Expert
16 0 2

Hello Sam

You might need to have a Company registered in the US because you are buying and selling in the states without bringing the products to Canada. I would contact the american Revenue Agency to confirm. Based in this you will then need to deal with the sales tax.


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