How do I handle taxes when selling on Printify from Poland?

[BoxingM]

Hello,

I want to start selling on Shopify with Printify and I wonder how is it when it comes to paying taxes. I do have a company based in Poland, is it sufficient enough or do I have to register in US or elsewhere? 

Best regards

[Victor]

Hi @BoxingM,

Thanks for reaching out. As you're based in Poland, I'd recommend reading our guide on EU taxes. This outlines how best to set up your taxes if you wish to sell products in the European Union and how you can charge VAT to customers within the trading bloc.

In terms of selling to the United States, you likely will not need to register for sales taxes there when starting out unless you have a physical presence there (such as employees, an office, or a warehouse). Sales taxes in the US are based on something called a tax nexus, and you'll only need to remit and charge sales taxes within a state if you're deemed to have a nexus there. States now have economic thresholds for tax registration, meaning you may need to register for sales taxes in a state if you earn over a certain amount of revenue or make over a specified amount of sales across a period of time (usually a calendar year). Until you meet any of these thresholds you likely will not need to charge your US-based customers any sales taxes on their orders.

While we're happy to offer general advice on setting up your taxes within Shopify, please note that we always recommend speaking with a tax professional in your local jurisdiction if you're unsure of your obligations from a taxation standpoint. Please let me know if you've any other questions.

[BoxingM]

Great, thank You so much for help and clarification!
One more question, what is that annual threshold of sales before I have to
register in the US?

[Victor]

Hi @BoxingM,

This varies on a state-by-state basis, and there isn't a single threshold on a federal level. I'd recommend checking out this article on the Shopify Blog which explains how to charge taxes in the United States, and this section specifically that focuses on economic nexus thresholds:

An economic nexus, on the other hand, is usually triggered when you reach a certain threshold of sales within the state. For example, the state of Illinois considers $100,000 in sales or 200 transactions in a 12-month period as the threshold for economic nexus. Texas, on the other hand, deems you have an economic presence if sales made into the state exceed $500,000 in the past 12 months.

Each state's local tax authority will have more information about these thresholds that you can refer to. If you start making significant sales into the US, I'd recommend keeping an eye on which states you're receiving the most orders from and you can then check the economic nexus thresholds for those states. Please also note that our tax liabilities feature will monitor your sales into each state and compare them to the relevant thresholds, and will alert you if you are close to or have crossed a threshold.

I hope this helps!