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0 pointspc861y ago0 comments

If you live in the US the only entity you need to collect sales tax for is the state you live in. Despite what they may say you are under no legal obligation to collect sales tax for the other 49 states, nor the EU or UK.

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bdw52041y ago

I'm pretty sure that was changed by South Dakota v. Wayfair[0]. Most states seem to only require you collect the tax if you have 200 shipments into the state or $100k in revenue because going after a small time out of state e-commerce business over a few dollars of tax probably wouldn't be worth it but a large firm in Delaware refusing to collect tax on shipments into California would probably be hearing from California's government.

If you're shipping overseas, you can probably ignore foreign taxes if you don't have a business nexus there. Especially if you have no desire to ever visit those countries. Basically just leave it up to your customers to pay whatever tax they owe.

[0]: https://en.wikipedia.org/wiki/South_Dakota_v._Wayfair,_Inc.

tppiotrowski1y ago

> Every company selling goods and services to European customers needs to collect value-added tax (VAT), even if their business is not established in Europe.

https://stripe.com/guides/introduction-to-eu-vat-and-vat-oss

bdw52041y ago

> Enforcement of judgments issued by foreign courts in the United States is governed by the laws of the states. Enforcement cannot be accomplished by means of letters rogatory in the United States. Under U.S. law, an individual seeking to enforce a foreign judgment, decree or order in this country must file suit before a competent court. The court will determine whether to recognize and enforce the foreign judgment.

Obviously, its not a good idea to bet your business on the courts not enforcing an EU fine when you can just add the VAT and cost of the handling hassle to the price for EU customers.

https://travel.state.gov/content/travel/en/legal/travel-lega...

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bdw52041y ago

[0]: https://en.wikipedia.org/wiki/South_Dakota_v._Wayfair,_Inc.

tppiotrowski1y ago

> Every company selling goods and services to European customers needs to collect value-added tax (VAT), even if their business is not established in Europe.

https://stripe.com/guides/introduction-to-eu-vat-and-vat-oss

bdw52041y ago

Obviously, its not a good idea to bet your business on the courts not enforcing an EU fine when you can just add the VAT and cost of the handling hassle to the price for EU customers.

https://travel.state.gov/content/travel/en/legal/travel-lega...

2 more replies

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