How do non-US citizens register for US taxes when selling online?

[Leenahh]

Hello all. 

I'm from Saudi Arabia, and my future customers are located in the U.S.
The products prices are between 50 to 200 USD

How much taxes do I pay to the US Gov?
How to register my E-store for Taxes in the US?

Note that: 

Im not currently in the US 

I have no physical store in the US 

I will only rent a storage/warehouse in the US to store my goods. 

for those who has the same situation, Please advice with thanks   =' ) 

[Moira · Accepted solution]

Hey @Leenahh,

As a seller in Saudi Arabia targeting customers in the U.S., you may be required to register for and collect sales tax from your U.S.-based customers. The specific tax obligations will depend on the state(s) where you have sales tax nexus, which is determined by factors such as your physical presence (e.g., warehouse) and the volume of sales.

• Sales Tax: The sales tax rate varies by state, ranging from 0% to around 10% on average. However, keep in mind that no federal sales tax exists in the U.S. The amount of tax you need to collect will depend on the applicable state tax rates.
• Registering for Taxes: To register your e-commerce store for taxes in the U.S., you'll generally need to follow these steps:
• Determine your nexus: Identify the states where you have sufficient presence to establish nexus. This typically includes having a physical location, employees, or inventory in a state.
• Obtain an Employer Identification Number (EIN): Apply for an EIN from the Internal Revenue Service (IRS) if you haven't already.
• State-specific registrations: Register for sales tax permits or licenses in the states where you have nexus. Each state has its own process and requirements for registration, which usually involves completing an application and providing relevant business information.
• Collecting and remitting taxes: Once registered, you'll need to collect sales tax from your U.S. customers during the checkout process. Make sure to keep detailed records of your sales and taxes collected. Depending on the state, you'll be required to file and remit the sales tax either monthly, quarterly or annually.

Note that tax laws can be complex and subject to change, so it's always recommended to consult with a tax professional or an attorney familiar with international tax matters to ensure compliance with U.S. tax regulations specific to your situation.

[Leenahh]

Thank you for your time, I appreciate it  😃 

[Moira]

Don't hesitate to reach back out if you require any further assistance as you continue to work on your store. 

All the best,

[Marikath]

I have a similar question. I want to start a drop-shipping and print-on-demand business on Shopify, but I am based in the Philippines. However, most of my potential customers/target market and drop-shipping suppliers are US-based and EU-based. Does this mean that I must register a business/LLC in the US instead of the Philippines? Or can I register it in my own country? If I register in my country, would I still be able to dropship to customers in the US? If so, how do I handle the sales taxes for customers in the US?

[ankitones]

Hi. I am based in India. I want to sell to US customers. But I dont have nexus in any state in the US. I will be shipping from india directly to the customers in US. Do I need to get an EIN in every state from which I get a customer's order?

[Midson_Kunal]

I am having a shopify store based in India. It's a men's fashion brand named 'MIDSON', I want to expand my customer base in abroad as well and want to sell in US and other foreign countries as well. I want to start with US and then other countries, I am not a US citizen and not having any place of business in US. I will directly ship parcels from India in starting and if got results, I will setup and warehouse in US. I just want to know that tax obligations and treatment in starting where i directly ship to US and also when i setup a warehouse there in any province according to circumstances??

[Victor]

Hi @Midson_Kunal,

Sales taxes in the United States are based on tax nexuses. If you open a warehouse in a US state, you will likely be deemed as to having a physical tax nexus in that state which would require you to register for sales taxes in that state. This means that customers based in the same state as your warehouse will be paying sales taxes on their orders. Economic tax nexuses also exist, meaning you may need to register for sales taxes in US states if you cross a sales threshold based on either revenue or number of sales, or in some cases both.

[Midson_Kunal]

Thank You @Victor, I got that regarding having physical warehouse, but if i want to ship directly from India to US to customers then what are the tax obligations??

[Victor]

Hi @Midson_Kunal,

We cannot tell you what your tax obligations are; it's your responsibility to learn the relevant tax rules for where you are selling and we'd recommenc consulting a tax professional if you are unsure. As mentioned, economic tax laws do exist in the US so if you start making significant sales into specific states you may need to register for sales tax there. The thresholds vary on a state-by-state basis.