Alidropship plugin and tax management

S

sethokayba

New Member
Hello there,

I want to know if the alidropship plugin can manage tax calculations automatically for dropshipped products depending on location (if i dropship products in all USA and every state has its own sales tax legislation, it will become a mega nightmare !)

NB : the case is for a llc company created by a non us-resident.

Thank you in advance,
Seth.
 
Mar

Mar

Moderator
sethokayba said:
Hello there,

I want to know if the alidropship plugin can manage tax calculations automatically for dropshipped products depending on location (if i dropship products in all USA and every state has its own sales tax legislation, it will become a mega nightmare !)

NB : the case is for a llc company created by a non us-resident.

Thank you in advance,
Seth.
Click to expand...
It is a nightmare if you make it a nightmare. You don't pay tax in a country you don't live.
 
Mar

Mar

Moderator
sethokayba said:
if only what you say is true, because living or not in a state (USA) does'nt frees you from paying taxes.
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Haven't heard anybody not a US citizen and don't live in the USA but pay taxes in the USA. That is a weird thinking, making something out of nothing.
 
S

sethokayba

New Member
it's because i've done some research that i'm talking that talk, have you heard about economic nexus ? it's quiet confusing :)
 
Mar

Mar

Moderator
sethokayba said:
but if you dropship your products in USA ?
Click to expand...
If you don't change the Shipping and Delivery terms of your website, it clearly state: We are not responsible for any custom fees once the items have shipped. By purchasing our products, you consent that one or more packages may be shipped to you and may get custom fees when they arrive to your country. Many stores are hardly making sales, yet they are trying to solve problems that don't even exist
 
Direct Webstore

Direct Webstore

Well-Known Member
sethokayba said:
i've done some research
Click to expand...
And what you've stated here is totally incorrect. Research some more.

sethokayba said:
economic nexus ? it's quiet confusing
Click to expand...
That's only applicable in your own country. You may have to pay sales tax (like GST) in your own country if you sell products to customers in your country. You DON'T pay sales tax for sales in OTHER countries.

Plus, of course, you have to pay general income tax in your country on your overall profits from ALL sales. I don't see what's confusing about that. It's quite simple. Go to the Tax Department website of your country for details.

Whether or not you have to register your business is up to your country's regulations. Again ... check with your government websites. Here in Australia for example ... it's optional.


:)
 
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Direct Webstore

Direct Webstore

Well-Known Member
sethokayba said:
so it's as simple as : Forming LLC company
Click to expand...
No. You do not have to form an LLC in the U.S. If you do, you will be operating your business in the U.S and THEN you will have to pay sales tax ... unless you set it up in a Sales Tax Free state like Delaware or Oregon.

The ONLY two reasons you would want to set up an LLC in the U.S is if you live in a country well known for scammers and can't get approved for a Paypal account or Credit card gateway (Some African, East European and Asian countries) ... or you want to be naughty and avoid paying taxes in your own country.

:)
 
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C

cleopants

Guest
The best suggestion by now was to register your business in a Tax Free State. That sounds the most reasonable. Just check how the regulation of that state works. It cannot be so easy. Try to consult a firm that's doing accounting and taxes, such as https://www.taxbycpa.ca/services/. You won't spend a lot of time , at least it will save you a lot of money in the future. Don't forget about the tax returns , so there are many ways to pay fewer taxes or not at all. You just have to get informed about that !
 
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