UK business using US fulfilment company – tax implications for myself and customer

Question

Hi there,

I am in the process of setting up an online business in the UK, selling T-shirts primarily. I am to use fulfilment company (based in California) for ALL orders on my store, due to the way their system can easily integrate into mine.

I have followed the fulfilment company’s guidance and set up appropriate sales tax for California (nexus etc.) customers at the checkout. They would pass this on to the relevant authorities. This part should be fine.

However, what is the process when a customer orders from outside of California, but within the US? From what I can gather, any fees incurred would be up to the customer to pay? Would there be any fees? How would this work? And also, what happens outside of the US, for different countries, regarding import fees and taxes?

Any help or suggestions would be hugely appreciated.

Cheers all 🙂

Answer

Hi there,

Many thanks for your question – you will hopefully get an answer in a week or so.

For now, I recommend looking at the following webinar for tips:

http://opentoexport.com/webinars/vat-fundamentals/

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