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Taxes when shipping to US/international

jolijosi
Visitor
2 0 0

Hi everyone,

 

I'm just starting my new business with Printful (selling art prints) and I'm a little bit overwhelmed with all the taxes stuff. I'm located in Canada (Qc) and I was planning to sell internationally until I saw all the legal stuff about taxes. Let's focus on the US: I have no residency there, I saw that depending on which state, you charge taxes only if you have a Nexus there (physically or economically), that I get, and I saw that Shopify even calculates when you reach that economic nexus for you to know when it's time to charge taxes in a certain state.. MY QUESTION IS: Do you have to register in EVERY SINGLE STATE that you sell when you're ready to charge taxes?? Some states have no nexus and charge taxes at the 1rst sale, so I WOULD NEED TO GET A LICENCE/REGISTER BEFORE SELLING? This is a lot and very complicated if it is that way. Can someone help me, tell me their own experience with shipping international bc I'm freaking out ! 

 

Thank you !

Accepted Solution (1)

KP_Enterprises
Explorer
54 2 15

This is an accepted solution.

My experience is that you reach Nexus before needing to register. Usually that means reaching over 100k in sales or exceeding 100 transactions. It does vary by state. You do register in each state and the rate for collection varies not only by state but by local jurisdictions. Rates vary by state, county, city and special jurisdictions and sometimes on shipping as well. It can be extremely frustrating. Shopify does have tax rate services and reporting that is helpful but lacking. Once you reach nexus and begin collecting, you register in that state and you will learn during registration if you are required to file monthly quarterly, or annually. Failure to file leads to stiff penalties and failure to pay on time brings penalties and interest.
Feel free to contact me if you'd like to be in contact with services that can help with filing.

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Replies 2 (2)

KP_Enterprises
Explorer
54 2 15

This is an accepted solution.

My experience is that you reach Nexus before needing to register. Usually that means reaching over 100k in sales or exceeding 100 transactions. It does vary by state. You do register in each state and the rate for collection varies not only by state but by local jurisdictions. Rates vary by state, county, city and special jurisdictions and sometimes on shipping as well. It can be extremely frustrating. Shopify does have tax rate services and reporting that is helpful but lacking. Once you reach nexus and begin collecting, you register in that state and you will learn during registration if you are required to file monthly quarterly, or annually. Failure to file leads to stiff penalties and failure to pay on time brings penalties and interest.
Feel free to contact me if you'd like to be in contact with services that can help with filing.

jolijosi
Visitor
2 0 0

Thank you for the answer, after much more digging on the internet I understand better. Because the US doesn't ask for a tax registration until you reach Nexus, I'll start selling to the US right away. 

 

Thank you !