First, I'm not american.
If drop shipping to US customers, with an office in Europe (the drop shipper/warehouse is in the US), what is needed?
I'm thinking about sellers permit, tax papers etc.
The products are non-taxable items in the states that the drop shipper is located in (they have to charge tax for other items they sell in these states. I don't sell these items).
I would really appreciated some comments here... Please let me know if you need more details. I'm not familiar with the tax system i the US.
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2 replies to this topic
#2
Posted 25 July 2009, 17:28
You're not shipping across national borders, right? So there's no customs hassles or duties to pay. For each state where your drop-shipper has a physical presence ("nexus"), they (or you) would have to collect and remit sales tax on taxable shipments to those particular states. It sounds like you've checked that out and don't need to collect and remit sales tax to any state? If so, I can't think of any paperwork that you need to do (permits, taxes). Have you discussed this with the drop-shipper to see if they know of anything you need to do? The only place where you may run into problems is getting payment from the US to your country -- whether there are complications with payment systems and currency conversions, and whether you'll be dealing with enough money to have to report to the Treasury Department cash transfers out of the country. If you're using something like PayPal, I would talk to them to see if they have any pointers about the ins-and-outs of international payments. I'm sure you'll pay a fee for conversion from USD to your currency, on top of the exchange rate and normal handling fees.
If your drop-shipper can't tell you for sure whether you need to register in some way in order to do business here, I would inquire at your local embassy, consulate, or US Chamber of Commerce to see if they can give you any leads. I doubt you'll have to register in any way, but it wouldn't hurt to play it safe and check. Good luck!
If your drop-shipper can't tell you for sure whether you need to register in some way in order to do business here, I would inquire at your local embassy, consulate, or US Chamber of Commerce to see if they can give you any leads. I doubt you'll have to register in any way, but it wouldn't hurt to play it safe and check. Good luck!
#3
Posted 25 July 2009, 18:38
Thank you so much for answering, MrPhil.
Correct. I don't ship across national borders.
Correct. These products are non-taxable in the states the drop-shipper has a physical presence.
No, I haven't done that. I don't really know how to put this, but it may hurt our business relationship if I asked a 'newb question' like that. So I would like to ask everyone els but them. Hope you understand.
Yes, I use Paypal. Customers pay me. I pre-pay the drop-shipper every once in a while.
Paypal charges me about $2 for each transaction. And when I'm converting to my own currency they get some more money 'cause I don't think they give me the actual rate. So they get their share - sure, hehe.
Thanks for the tip. I'll take some calls to be sure.
Again, thank you so much for answering!
Have a great weekend.
MrPhil, on Jul 25 2009, 06:28 PM, said:
You're not shipping across national borders, right?
Correct. I don't ship across national borders.
MrPhil, on Jul 25 2009, 06:28 PM, said:
For each state where your drop-shipper has a physical presence ("nexus"), they (or you) would have to collect and remit sales tax on taxable shipments to those particular states. It sounds like you've checked that out and don't need to collect and remit sales tax to any state?
Correct. These products are non-taxable in the states the drop-shipper has a physical presence.
MrPhil, on Jul 25 2009, 06:28 PM, said:
Have you discussed this with the drop-shipper to see if they know of anything you need to do?
No, I haven't done that. I don't really know how to put this, but it may hurt our business relationship if I asked a 'newb question' like that. So I would like to ask everyone els but them. Hope you understand.
MrPhil, on Jul 25 2009, 06:28 PM, said:
The only place where you may run into problems is getting payment from the US to your country -- whether there are complications with payment systems and currency conversions, and whether you'll be dealing with enough money to have to report to the Treasury Department cash transfers out of the country. If you're using something like PayPal, I would talk to them to see if they have any pointers about the ins-and-outs of international payments. I'm sure you'll pay a fee for conversion from USD to your currency, on top of the exchange rate and normal handling fees.
Yes, I use Paypal. Customers pay me. I pre-pay the drop-shipper every once in a while.
Paypal charges me about $2 for each transaction. And when I'm converting to my own currency they get some more money 'cause I don't think they give me the actual rate. So they get their share - sure, hehe.
MrPhil, on Jul 25 2009, 06:28 PM, said:
If your drop-shipper can't tell you for sure whether you need to register in some way in order to do business here, I would inquire at your local embassy, consulate, or US Chamber of Commerce to see if they can give you any leads. I doubt you'll have to register in any way, but it wouldn't hurt to play it safe and check. Good luck!
Thanks for the tip. I'll take some calls to be sure.
Again, thank you so much for answering!
Have a great weekend.
