I have recently created an online store with shopify and oberlo. I have already added some items and set up almost all the requirements except for taxes, as to be honest, I am not too sure of what should I do.
My business model it is as follows. I dropship items from China to only USA customers, and I live in London.
I have done some research and, If I understood correctly, if I'm dropshipping from Aliexpress (China) to only USA customers, and I live in the UK, I don't have to worry about taxes as neither me or the dropshipper have nexus in any state? Can someone clarify this to me please?
Do I have to pay taxes for the profit made with the online store to the UK government?
Thanks for the help guys,
Nick here from Shopify.
Great question as taxes can be difficult to figure out on the best of days. The first thing I will say is Shopify are by no means tax experts and your best bet is to reach out to a professional accountant or your local tax office to be sure on what taxes you need to charge. Shopify has a helpful guide for setting up taxes for stores based outside of the USA which you can see here. But just to stress Shopify cannot advise you on where and how to charge taxes but advise you to reach out to a local tax expert (Tax office or professional accountant) to know if and when you would need to charge taxes. There are some blog posts about the South Dakota vs Wayfair: Economic Nexus which I feel could be beneficial to you also:
Hope that helps and don't hesitate to reach out again should you have any other questions about this or anything else.