Selling to the USA by an online service

Question

We are an education sector business with a cloud based service that we wish to provide to a school in the USA. This first school is only worth around £1000 or so, but could (hopefully) be the first of many.

The service itself will continue to be provided from the UK.

Are there any forms that will need to be filled in, or taxes that I will need to consider?
Are there any thresholds for any taxes that I need to be aware of?

Many thanks in advance!

Answer

We have several off shore clients providing cloud based services into the USA.They generally declare their USA revenue net of expenses to the IRS. Expenses could include delivery costs, sales and marketing, admin etc. and must be deemed reasonable. There are also state tax implications.

We are focused on growing revenue not accounting so my best advice would be to contact a USA accountant.

Happy to provide a name if you want one.

Answer

Hi Ben

Have you considered registering in the US?
If you would like to talk my email is paul@britishwonder.com

Answer

Many thanks for your answers – I’ll try and find someone at the IRS to speak to. Are there any good resources online for working out state tax implications?

I would imagine that registering as a company in the US wouldn’t be worth it in the short time, as we only have £1000 worth of business there at the moment – would that be a safe assumption?

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