How is international sales tax calculated for drop shipping businesses?

J971
Visitor
2 0 0

Hello!

I'm just getting started with a print on demand / drop shipping biz and I need some clarification on sales tax. I will be using Shopify to fulfill some products and Printful for others. I'm based in California but plan to sell and ship globally. How is sales tax calculated when using the two different platforms? Will tax records be generated by each separately? Do I need my own filing app like Taxify?

Any help is greatly appreciated as I feel like my head is going to explode trying to figure this out on my own.

Thanks,

J.  🙂

Replies 2 (2)

Don
Shopify Staff
2777 199 390

Hi there @J971!

 

I'd like to share some info with you here in terms of how Shopify can help you correctly charge taxes for where you are.

 

First off though, it's important to be clear that we can't help you to determine your tax eligibility or offer any advice on taxation ourselves here at Shopify.

 

As such, we'd always recommend you consult a qualified expert where you are to ensure you're compliant.

 

That said, I'd like to share some info on Shopify's tax settings you can use to automate charging sales tax once you have determined your liability.

 

Check out our guide to US taxes here on our help site, as it's got a lot of great info on determining your tax liability (and there's even a section specifically on dropshipping you can refer to).

 

If you're thinking of using a print-on-demand service, check out our blog article on the topic here and another one featuring the 10 Best Print on Demand services.

 

In terms of dropshipping, have you settled on a product niche?

Don | Social Care @ Shopify 
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TeemuEAS
Shopify Partner
121 1 22

The simplest solution for EU compliance is here: https://apps.shopify.com/eas-eu-compliance

EAS handles registrations and automates everything from calculation to reporting. Simple pricing makes it a no-brainer, www.easproject.com 

 

If, like most, you prefer not to study EU VAT, just book a meeting for quick EU compliance 

https://meetings.hubspot.com/robert662/30-min-demo 

 

 

EAS EU & UK Compliance app is a fully automated European VAT solution for Shopify.