Hi Everyone,
We have a VAT registered UK company and have been drop shipping within the UK for a couple of years.
We are about to start drop shipping in the USA (although our business will remain fully located in the UK). We will be advertising items on ebay.com (USA) and when a customer purchases an item, the item will be shipped directly from a USA supplier to the USA customer.
What would be our tax liabilities on this kind of setup? Would we have to pay any US tax, either on income/profit or on product sales (e.g US equivalent of VAT) or would we just pay UK tax on profits and not add VAT on those sales?
Thank you
We have a VAT registered UK company and have been drop shipping within the UK for a couple of years.
We are about to start drop shipping in the USA (although our business will remain fully located in the UK). We will be advertising items on ebay.com (USA) and when a customer purchases an item, the item will be shipped directly from a USA supplier to the USA customer.
What would be our tax liabilities on this kind of setup? Would we have to pay any US tax, either on income/profit or on product sales (e.g US equivalent of VAT) or would we just pay UK tax on profits and not add VAT on those sales?
Thank you