Taxes for International drop shipper to US

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LazyKing

New Member
Hi, I am based out in India .. If I dropship from aliexpress supplier to USA, do I need to pay any taxes in USA ?

Also how to handle taxes in India, what all taxes I have to pay in India ?
 
Direct Webstore

Direct Webstore

Well-Known Member
LazyKing said:
Regarding US taxes
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If you don't live there ... you pay no taxes. That article concerns U.S citizens and businesses registered there. If you do register a business there ... do it in a Sales Tax free state ... Like Delaware or Oregon.

Your own country on the other hand, you do have to pay tax/GST for any customers in your country. Not for customers in other countries (I imagine). I suggest you research your governments tax department site in India. That's how I learnt about my tax obligations here in Australia.

Here ... once my sales are over $75,000 per year, I must pay 10% GST for Australian customers ... only. Not for customers in other countries. Of course I also have to pay normal income tax on my overall earnings.

Needless to say, you should set up a book keeping system to keep track of your expenses and profits. Plus sales made to Indian customers for GST purposes.

I just use Excel with my own worksheets. Or you could Google for some free small business accounting software.
 
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L

LazyKing

New Member
Direct Webstore said:
I think because India and Australia were both ruled by the British at one stage (Boo Hiss! lol) ... the tax requirement would probably be similar.
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We have new tax reform - called GST now .. which has made things really complex. And for online dropshipping different CA's have different views
 
L

LazyKing

New Member
Yes so going by this calculation if its 18% on Profit + 30% Income Tax - Just thinking whether dropshipping would be profitable or not ?
For eg if I make $5 profit I will actually get $2.87 only (-18% -30%) :(
 
Direct Webstore

Direct Webstore

Well-Known Member
LazyKing said:
Just thinking whether dropshipping would be profitable or not ?
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I'm sure that GST in India is only payable after you make a cetain amount ... if they are sticking to the British system like Australia does. Here it is over AU$75,000 per year you pay GST ... and if I'm making that much ... I can afford to pay the tax ... even in expensive Australia.

And on that note ... You also have to factor in that living expenses are fairly low in India ... that's why I'm planning to retire in Camdodia ... where they are even more lower. :)

Target the USA ... get all those American dollars, convert them to to Rupees and live like a (lazy) king ... or @kingpin lol :)
 
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L

LazyKing

New Member
Yes GST does has some limit but Income Tax I will have as would be doing drop shipping as part time along with my regular job.

Have a lot to learn yet on this .. :)
 
Direct Webstore

Direct Webstore

Well-Known Member
Well look at it this way ... because drop shipping has very low overheads (yearly domain name/hosting fee + advertising only) ... you're unlikely to go into the red ... unless you make really terrible ads selling really boring products.
 
L

LazyKing

New Member
Direct Webstore said:
Well look at it this way ... because drop shipping has very low overheads (yearly domain name/hosting fee + advertising only) ... you're unlikely to go into the red ... unless you make really terrible ads selling really boring products.
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Yes thinking same .. Thanks for your advice.

Will try to reach @kingpin
 
L

LazyKing

New Member
Any other Indian drop shipper who can help on GST related questions when drop shipping from India to USA.

Tried contacting @kingpin but no luck yet !
 
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