Question for Canadians drop shipping from the US to US customers

Highlighted
Shopify Partner
1 0 0

Hey there,

I'm located in Toronto, and I currently operate a shop and ship physical goods myself to the US. I am considering adding a line of products the will be drop shipped from a company located in Florida (only a few products) to customers in the US. I'm going to be sitting down with an accountant next week, but I was hoping someone would be able to give me their experience with this.

Does drop shipping create a tax nexus for me in the United States? The drop shipper will be charging me tax on shipments going to Florida (which makes sense, I am willing to absorb that as a cost of doing business). But will I have a nexus in the states? From my understanding - I shouldn't, but I could be wrong. I'm sure there's a few Canadian drop shippers here - do you have a nexus in the states?

To clarify my one and only drop shipper would be in Florida. All of my customers will be in the US. And I am located in Ontario.

 

Cheers

0 Likes