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Tax Considerations for Dropshipping: Selling to the US from Overseas

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Tax Considerations for Dropshipping: Selling to the US from Overseas

Visabel
Visitor
1 0 0

I am currently not located in the US, nor am I a US citizen. However, I am in the process of building a Shopify store (not yet live) specifically for sales within the US market. My inquiry pertains to taxation. As I do not have a physical presence or economic nexus in the US, I understand that I am not obligated to levy any form of taxes at this stage. I am partnering with Printful, who will handle tax charges with each customer order. This process is automated through the Printful app integrated into Shopify.

My concern arises from the fact that, since I will not be applying sales tax, I am thinking about updating the statement from "taxes calculated at checkout" to "taxes included," as I already have. However, should customers inquire about the tax amount, I would be unable to provide a precise breakdown. My question is twofold: can I inform customers that I am not directly applying sales tax, but rather Printful is charging me, and subsequently provide them with that amount? Alternatively, is it possible for me to configure taxes within Shopify to simulate their collection, solely to furnish customers with a detailed breakdown?

Accepted Solution (1)

LexiTheCreative
Visitor
1 1 1

This is an accepted solution.

Personally, I love when taxes are included, and the extra details don't matter much. It means the price won't be going up anymore and feels more direct to me. I do not think I would choose to discuss my businesses tax breakdown with a consumer, especially when they can find out themselves by looking at Printful costs, and recomend directing them there for the breakdown of costs if they are so interested. 

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Reply 1 (1)

LexiTheCreative
Visitor
1 1 1

This is an accepted solution.

Personally, I love when taxes are included, and the extra details don't matter much. It means the price won't be going up anymore and feels more direct to me. I do not think I would choose to discuss my businesses tax breakdown with a consumer, especially when they can find out themselves by looking at Printful costs, and recomend directing them there for the breakdown of costs if they are so interested.