US taxes while selling in India

Shopify Discussion

Topic summary

Issue: India-based seller using Printful/Printify asks how to handle US taxes when selling to US customers.

Key guidance provided:

  • Sales tax nexus: Liability depends on having a “nexus” (connection) with a state. US fulfillment by Printful/Printify may create nexus based on where they ship from. Some states use “economic nexus,” triggered by sales thresholds even without physical presence.
  • Collection and remittance: Printful/Printify typically do not collect sales tax for you. You may need to obtain sales tax permits in nexus states, collect tax at checkout, and remit to those states. Shopify tax settings can be configured for this.
  • Indian VAT/GST: US customers aren’t charged VAT/GST, but your Indian business may owe GST on proceeds; comply with Indian rules.
  • Automation: Consider tax automation integrations (e.g., Avalara, TaxJar) for multi-state compliance.
  • Professional advice: Consult a tax expert familiar with US and Indian laws.

Status/outcome: Informational guidance only; no final resolution. Next steps are to assess nexus, register where required, set up collection/filing, and seek professional advice.

Summarized with AI on December 21. AI used: gpt-5.
1

Hi team, Im setting up an online shop from India with Printful and Printify as my printing shops. Now in order to sell within the US, what would be my tax policies? Im only a designer and Im not printing the products myself, so what am I to do about the taxes here?

Thanks and regards

Pal

2

Hello @pallettenadco

Creating an online business with Printful and Printify is an exciting step! When selling in the United States from India, tax compliance is critical, so it’s fantastic that you’re looking into it early on.

  1. Sales Tax Nexus: In the United States, sales tax is often determined by whether you have a “nexus” with a state. Because you are situated in India and your print-on-demand partners (Printful and Printify) handle production and fulfillment in the United States, your nexus may be determined by where they ship from. However, some states consider economic connection, which means that if your sales above a specific threshold, you may be obligated to collect and remit sales tax in that state, even if you are not physically present.

  2. Sales Tax Collection: Printful and Printify often do not collect sales tax on your behalf. You may be required to apply for a sales tax permit in states where you have nexus, collect sales tax on orders, and submit it to the appropriate states. Shopify includes tools to assist you set up sales tax collection, and you may customize your tax settings based on where you’re obliged to collect taxes.

  3. VAT and GST: Because you are situated in India, you must comply with VAT or GST requirements when conducting business. Customers in the United States will not be charged these taxes, but your sales proceeds in India may be subject to GST. It is essential that you consult with a tax specialist who understands both US and Indian tax law.

  4. Automated Tax Solutions: Shopify integrates with tax automation technologies like as Avalara or TaxJar, which can assist with sales tax collection and filing, particularly when selling to numerous states in the US.

While managing taxes might be difficult, remaining compliant will help your company develop smoothly in the US market. It may be worthwhile to speak with a tax expert who is knowledgeable with cross-border e-commerce to ensure that everything is properly set up.

Best of luck with your shop!

Regards,

Adebayo