Based in Hong Kong, sell in US mainly. Should I open a US store?

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New Member
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Hi,

I am HongKong based international seller, over 70% of buyers from US, less than 1% of buyers from HongKong.

If I set up my credit card payment gateway located in HongKong, the charge will be expesive, 2% of shopify transaction fee + payment gateway charge(around 3-4% depends on which company you use), since my buyers are mainly international (in the point that I am HongKong seller), extra 1-1.5% is needed.

However, if I set up my store location in US, I can use shopify payment, the total fee by shopify payment is only 2.9% (alll included), easy to use, I love it. But it comes with a problem, 1099-K form which is for US IRS. Shopify will submit my sales to report to IRS (all merchants who process more than $20,000 and have more than 200 transactions are required to submit a 1099-K form to the IRS. This form is generated by Shopify Payments and provided to both the merchant and the IRS on an annual basis.)

I also sell on Amazon, ebay(paypal), they are also requiried by IRS for 1099-K form. However, paypal and amazon request the foreign seller submit a Form W-8BEN in order to be exempt from U.S. tax reporting requirements.

1. Can I use shopify payment? I have an address in US for receiving bank statment.

2. I really want to use shopify payment, but any of you know about Form W-8BEN in shopify?

Thank you

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Shopify Staff
Shopify Staff
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Hi Patrick,

In order to use Shopify Payments you would need to have a valid EIN number issued by the IRS. For your scenario we would not be able to offer you a Shopify Payments account as much as we would like to have you on board!

Nathan McClung, Plus Onboarding Specialist
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New Member
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Kinldy also give input for hongkongpost shipping gateway

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