Should I be charging tax/VAT on dropship (from aliexpress) products?

jinnypeace9
Explorer
52 0 11

Hi,

 

I am from Thailand and I will be selling dropship product on my store to worldwide. Do I need to charge tax? I've never paid any tax and don't have a company, I don't earn any right now as well.

 

If I be charging VAT on my store, then that would just mean I earn more profit??

 

I will probably pay tax but maybe after I register the business, but I think that will take sometime as I don't earn any money right now.

 

Thank you.

Reply 1 (1)

Victor
Shopify Staff
2510 229 532

Hi @jinnypeace9,

 

First of all, if you are not required to remit sales taxes in any of the countries or regions you sell to, then you should not be charging customers sales tax when they shop on your store. It is your responsibility as a merchant to know your tax obligations and charge customers sales taxes only when appropriate.

 

Can you tell me where you are selling to, or are planning to sell to? Different countries and regions will have varying laws with regards to sales taxes and tax registration, and you'll want to be aware of when you are required to register for sales tax for every place you sell to.

 

For example, in the United States, you may be required to register for sales tax in a state if you meet certain economic thresholds, such as earning a certain amount of revenue or a number of orders from customers in a state. This means you might be required to charge and remit taxes in the United States even if you have no physical presence there.

 

You can read more about setting up your taxes within Shopify on our Help Center, and there's plenty of region-specific information here about charging taxes in a number of countries. We are happy to offer general advice with regards to managing your taxes in Shopify but we would always recommend speaking with a tax professional if you are unsure of your obligations. 

 

Victor | Social Care @ Shopify 
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