Hi r/entrepreneur!
Obligatory "Oh christ not another t shirt POD dropshipping business" warning- this is, partially, a t shirt POD dropshipping business
So I'm planning on launching in the next two weeks a Shopify store that I have been building out, after having a small amount of passive sales success (>$100 profit pcm with zero effort) with some designs over the last 18 months on sites likes RedBubble.
I decided that, in the first three or four months at least, I would use Printify to sell POD t shirts, posters and other products.
I'm based in the UK, but will be selling t shirts internationally, using printers in the UK to fulfil EU orders (at least until Brexit....), and US printers for American orders.
The inventory will be mainly political satire or campaigning tees, with a few pop-culture references thrown in for what are known as "transformational purposes"- in other words the value doesn't arise uniquely from the element of pop-culture referenced, but also from other elements- say again for political satire.
Now I know within the EU that once I hit a certain level of income I have to charge VAT, and that's all fine.
My concern is twofold- firstly, if I am having t shirts, canvases etc. printed by a US printer, even though I'm a British company selling designs from the UK, do I have to charge sales tax as the physical production takes place in the United States?
Secondly, I'm concerned by this new Supreme Court ruling on economic nexus. I quote from taxjar.com:
In other words, due to the Wayfair ruling, even if you do not have a physical presence in a state, if you pass a state’s economic threshold for total revenue or number of transactions in that state, you’re legally obligated to collect and remit sales tax to that state.
Does this only apply to US businesses, or will I as a UK business have to factor this in, presuming my first concern doesn't already open me up to sales tax?
Has anyone else on here run an ecommerce store from outside the US and resolved this issue?
Also, say my business does have to charge sales tax- are there any good Shopify tools that automate this, and how do I pay it to each State in question?
If anyone has done any of this before, your ideas massively welcome!
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