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Selling internationally - how does this affect income tax?

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Hi! I am starting to open my eBay + oscommerce online shop to international buyers. I was wondering how this will affect my income tax as now money will be coming from different currencies? Can I claim back money for bank charges on converting currencies? How would I go about doing this? I've looked at tax calculators such as this one but can't add VAT return amounts which has stumped me completely. Is it even something worth worrying about? Sorry for the slurry of questions haha - thanks in advance for any replies though

Edited by burt
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Any revenue you collect is subject to income tax, regardless if it came from America or another country.

Yes, you can write off those fees as a business expense.  No different than writing off all of your PayPal transaction fees from sales on eBay. 

When it comes to self-employment tax, take as many deductions as you can!

PayPal will hit you with a 4.4% transaction fee plus a fixed fee based on the currency received from international buyers, versus 2.9% plus 30-cents for American buyers.  You can download statements from PayPal for accounting/tax purposes.
 

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These are questions you should really be asking a qualified accountant not a person on a ecommerce software website.


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Make it idiot proof and someone will make a better idiot.

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