Should I collect Taxes?

R

rabinmahmud

Member
Hi,
I just launched my store and but I'm not sure should I collect Taxes from my customers? Note: I'm targeting only us customers + I got LLC from Wyoming usa
 
daudi250

daudi250

Member
If it is a requirement for USA then you can or if aliexpress is charging you tax, then you can.

I think every state has its own policy in USA.
 
Mar

Mar

Moderator
rabinmahmud said:
Hi,
I just launched my store and but I'm not sure should I collect Taxes from my customers? Note: I'm targeting only us customers + I got LLC from Wyoming usa
Click to expand...
There is a lot of discussion about tax in this forum. You have to search it.
 
Direct Webstore

Direct Webstore

Well-Known Member
I don't charge my customers Tax. The large markups with dropshipping and the low overheads and running costs enable any taxes I have to pay easily absorbed by the profit. Use the KISS system. (Keep It Simple Stupid) .. ;)

If you're smart and have an LCC in the States, you would have registered your business in one of the several states that have no sales tax.
If you live out side the U.S.A you don't need to pay them sales tax.
You do not have to pay any sales tax to countries outside your own country.

In your own country you have to pay income tax on your profits ... which is normal.
As for sales tax (GST VAT etc) many countries only require you to pay that after your sales reach a certain amount. Here in Australia I only have to pay GST when my sales go over $75,000 per year. I heard through this forum that India and other places have similar systems.

It's up to you to research your own country's tax requirements. Start with your government's Tax Department's website and Google.

;)
 
CDDiva

CDDiva

New Member
rabinmahmud said:
Hi,
I just launched my store and but I'm not sure should I collect Taxes from my customers? Note: I'm targeting only us customers + I got LLC from Wyoming usa
Click to expand...
I am not sure of the correct response to this myself, but I also only sell and ship tangible items within the US only.
I have set my check out to only collect tax from my own state, not the others. Hopefully I am doing that correctly.
 
Direct Webstore

Direct Webstore

Well-Known Member
Let's make it simple and step by step.

1. Google search results "Wyoming Sales Tax"
Sales tax in Wyomimg is 4%. This is what happens when no research is done. You should have used one of the several Sales Tax free states and had no worries. Now you have extra hassles.
https://www.google.com/search?ei=DD...ws-wiz.......0i71j35i304i39j33i10.syY0UEFFOuU

2. Google: "How do I pay my sales tax in Wyoming?

3. Google: "What taxes do I pay in (insert your country here) for an online store.

4 Check this out as well.
Mar said:
See this search, https://forum.alidropship.com/search/122602/?page=2&q=taxes&t=post&o=date
Click to expand...


5. Search results from Alidropship's documentation for "Tax" (to implement it in your store).
https://help.alidropship.com/?q=Tax

6. Learn how to search and research. It's an essential component of running any business.


And finally ... if I was you, I would not charge the 4% sales tax to your customers. 4% can be easily absorbed by the huge profit margins in dropshipping from China. You also have very low overheads, apart from advertising.

Also, if I was you, I'd see if I could transfer my LLC address to a tax free state and avoid all the problems and hassles you've already made for yourself.

;)
 
Last edited:
daudi250

daudi250

Member
Direct Webstore said:
The items are not in Australia. GST is charged on products that are sent to Australian addresses.

;)
Click to expand...


yeah, my market is Australia, So i have to pay a GST on it from AliExpress, but i dont charge my customers because I am not registered for GST as a business. Anyways, until unless i dont above and beyond the threshold of 75k per year. I am good :D
 
Direct Webstore

Direct Webstore

Well-Known Member
daudi250 said:
yeah, my market is Australia,
Click to expand...
I live in Australia too ... but I mainly target the U.S. Of course I also sell to Australia and anywhere else in the World. 300 million dumb Americans who will buy anything can't be ignored. lol There's only 25 million of us in Oz.

daudi250 said:
Anyways, until unless i dont above and beyond the threshold of 75k per year. I am good
Click to expand...
That's right. And if I DO go over $75,000, I'll gladly pay the GST as I'll easily be able to afford it ... as long as I don't lash out and buy sports cars and yachts like those bullshitting drop shipping gurus on Youtube claim they do ... lol ;)
 
daudi250

daudi250

Member
Direct Webstore said:
I live in Australia too ... but I mainly target the U.S. Of course I also sell to Australia and anywhere else in the World. 300 million dumb Americans who will buy anything can't be ignored. lol There's only 25 million of us in Oz.


ahahahahaha.. damn, makes sense. I will need to see what things to sell in the US.

So for the payment method, do you stripe?

That's right. And if I DO go over $75,000, I'll gladly pay the GST as I'll easily be able to afford it ... as long as I don't lash out and buy sports cars and yachts like those bullshitting drop shipping gurus on Youtube claim they do ... lol ;)
Click to expand...

ahahahaha.. man they might get one on rent and show off :p If you have seen on the news. there was one guy who got a lambo on rent and didnt fuel it up. in the end he was pushing it like a normal car on chapel ST in Melb.
 
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