I want to open a print on demand business, have an account with an online shop that designs clothing designs which I linked with Shopify. I would like to know since I do not have physical products and I am not from the United States; do I need to have a tax number or charge taxes. How does it work?
Thank you for your post. I'm unable to provide tax advice, and in order to determine your businesses tax obligations, you will need to get in touch with local tax authorities or a tax professional. However, we do have some tax resources that I wanted to share with you.
If you plan to sell in the United States, you can reference our US taxes help document. I found the following information on dropshipping, which would be similar to print on demand in terms of tax obligations:
If your store uses dropshipping to provide products to your customers, then essentially you are buying a product from another vendor, and then your customers buy that product from you. Whether you charge tax depends on the location of your customer and where you and your dropshipping vendor have nexus.
There's more information in the help document I linked above, so I definitely recommend checking it out!
Additionally, if you have questions about your tax obligations in the US, you can hire a Shopify expert that specializes in sales tax! Shopify experts are highly-skilled designers, developers, and consultants who specialize in building successful brands, businesses, and Shopify stores. Each expert is reviewed before joining the marketplace, so you know you can trust them to get the job done. You can find our tax experts here!
I hope this information helps — please let me know if you have any more questions.
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