Hey,
could you help me please, do I need to pay Sales Tax and Income Tax if I sell on Amazon USA using the Online Arbitrage model as an individual (without a registered company) from abroad?
Also, did I understand correctly that Sales Tax is calculated as a percentage of the price at which I purchase the product and NOT the price at which I sell it, right?
Thank you
Whether you need to pay sales tax and income tax when selling on Amazon USA using the Online Arbitrage model as an individual (without a registered company) from abroad depends on a few factors, including:
Your home country’s tax laws
The state(s) in which you are selling products
The type of products you are selling
In general, you will need to collect sales tax on sales to customers in states where you have a physical presence. This could include having a warehouse, an office, or even a salesperson in the state. You can also be considered to have a physical presence if you have a significant number of sales in the state.
The sales tax you collect will be based on the sales price of the product, not the purchase price. However, you may be able to claim a deduction for the sales tax you paid on the purchase price of the product. You will also need to pay income tax on your profits from selling on Amazon. The amount of income tax you owe will depend on your home country’s tax laws. It is important to consult with a tax advisor to determine your specific tax obligations.