Taxes - Clarification

Flintstone

New Member
I did search but there is a lot of contradictory information so I would like to get this clarified.

I am a UK based Retailer.
Like most of you, my Vendor is Ali-Express.

Can somebody please confirm my research?
  1. I don't have to pay sales tax when shipping to the USA, where I have no Nexus (no physical presence).
  2. I do have to pay VAT when shipping to the UK because I am based here.
  3. I do have to pay EU VAT to an EU country when my sales within that country within a 12 month period reach some mysterious threshold (apparently, only items costing over some mysterious price count).
  4. If I am shipping to a country outside of the UK and USA I don't need to worry about taxes until my sales within that country within a 12 month period reach some mysterious threshold (apparently, only items costing over some mysterious price count).
This seems like quite a minefield to me but speaking to an accountant about this shows that they are just as mystified.
 

Direct Webstore

Well-Known Member
I don't have to pay sales tax when shipping to the USA, where I have no Nexus (no physical presence).
Right.

I do have to pay VAT when shipping to the UK because I am based here.
Right. But there may be a threshold. Here in Australia, I have to pay GST, but only after my stores make over $75,000.

I do have to pay EU VAT to an EU country when my sales within that country within a 12 month period reach some mysterious threshold
I'm not sure, but I'm guessing no. At least I don't have to based here in Australia when I sell to EU customers. This is like the first question about the U.S. Better to get a Brit to confirm this one. Don't know what's going on with the U.K, Brexit and all that crap.

If I am shipping to a country outside of the UK and USA I don't need to worry about taxes until my sales within that country within a 12 month period reach some mysterious threshold

The only taxes you need to worry about are taxes you pay to the U.K government. i.e, VAT and basic income tax on your profit. At least that's the way it is with all other countries. But with Britain joining the EU ... I can't say for sure. You should search around in the U.K Tax Department's website.
 

Rumegado

Member
But, why AliExpress, why not Amazon, is there difference with the points written above?
 
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