Sales Tax Nexus for those outside of US

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I'm based in the Philippines, and I just want to confirm if only those who have nexus in the US are obligated to pay sales tax. From what I have researched, those outside of the US are only obligated to pay the income tax in their own countries, correct?

 

However, I will be selling items from printful. Will I have to pay taxes for the items I sell through them?

 

Also, I am not sure as to how Philippines to any other of the big 5 countries to dropship to works, in terms of sales tax. Is it the same as with the nexus of the US, or are there any other things we need to know in terms of sales tax?

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Shopify Staff
Shopify Staff
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Hi @becuzegg

 

Nick here from Shopify. 

 

Great question. Taxes can be difficult to figure out especially with the added addition of Printful drop shipping in the mix. The first thing I will recommend is to visit your local tax office or a professional accountant about your taxes. Tax laws are different for every country and even regions within countries, because of this it is best to seek out a professional in the region you are based to understand what exactly you need to do. 

 

Regarding how taxes work when using Printful when you're setting up tax rates on Shopify, you are asked to add a physical presence. Since Printful is your fulfillment service, the address you add would be Printfuls. The Printful team created a video tutorial going through the steps on how to add your tax settings which you can see below:

 

I hope this helps and answers your questions. Please let me know if you have any other questions about this or anything else. 🙂

 

All the best, Nick

 

 

 

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