Dropship taxes Canada & USA

Discussion in 'eCommerce' started by sam340, Sep 18, 2013.

  1. #1
    Hi everyone,

    I am starting an e-commerce website that I will be selling products with some dropshippers.

    I am located in Canada and I would like to know some informations.
    Should I register my company where I live in Canada or in the USA ?

    My main inquiry is for taxes, since I am located in Canada and my dropshipper in the US who pay the tax and who I need to charged tax to ?

    Should I charged taxes to customer who are in the same state of the dropshippers or charged tax only to Canadians where my business is located ? Or incorporate a business in the US ?

    I want to sell and ship worldwide, I sell from Canada but orders are fulfilled and ship in the US.

    So what should I do, Incorporate my business in Canada or in the United-States?
    Charge Taxes to customers who are in the states my business is located and/or charge taxe to customer who are in the sames states as my dropshippers ?

    Thank You guys.

    Can I work with US Dropshipper if my company is located in Canada ?
     
    Last edited by a moderator: Nov 28, 2013
    sam340, Sep 18, 2013 IP
  2. Canadiangoldstien

    Canadiangoldstien Greenhorn

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    #2
    I believe you would tax canadians who live in your province,
    and your drop shipper in the states would have to charge tax to anyone
    who lives in the same state as they are.
     
    Canadiangoldstien, Sep 30, 2013 IP