So, according to you foreign-owned DRE (Colorado registered two-(foreign) member LLC) doing Amazon online arbitrage has to file and pay taxes in the US as my inventory is on the US soil? Regardless of the LLC not having any fixed business presence (offices, warehouses, physical presence) nor dependant agents (employees)? A popular CPA TH-camr says using 3PL (prep centre) services for storing and shipping inventory gets you "off the hook" as regards paying taxes in the US. Guess you would disagree? My European home country has double taxation avoidance treaty with the US. How can I forecast the amount of taxes I'll have to pay to, I guess, the IRS? Do I pay even when reinvesting all proceeds into business growth? Tnx!
Your situation is complicated and we definitely recommend consulting with a professional. This video does not include discussion around tax treaties and focuses solely on effectively connected income. GENERALLY SPEAKING if you are in a treaty country you have to look into the definition of permanent establishment. If permanent establishment does not include 3PL services, then you should be fine. We obviously still recommend that you file protective tax returns (5472 and 1040NR). As mentioned before, be smart and do consult with a professional about your specific situation.
Hi I’ve watched all 3 videos and they are amazing I just have a question. So lets say you live in Ireland and you sell to the US Dropshipping from china and you register for VAT to get a return on the vat taxes you pay on your facebook ads. Do I then have to charge 23% VAT to my US customers and also still pay 23% VAT on revenue even tho I am selling outside the EU to the US? Or since I am selling to the US I don’t have to pay VAT but instead US Sales tax if so whats the percentage?
Our firm does not handle VAT compliance - our recommendation is that you find an accountant more familiar with European VAT. If you are operating through a European business entity then VAT is mostly likely much higher risk. If you're operating through a US business entity it gets a bit more complicated, but it is far less risky operating through a US entity.
So, according to you foreign-owned DRE (Colorado registered two-(foreign) member LLC) doing Amazon online arbitrage has to file and pay taxes in the US as my inventory is on the US soil? Regardless of the LLC not having any fixed business presence (offices, warehouses, physical presence) nor dependant agents (employees)?
A popular CPA TH-camr says using 3PL (prep centre) services for storing and shipping inventory gets you "off the hook" as regards paying taxes in the US. Guess you would disagree? My European home country has double taxation avoidance treaty with the US. How can I forecast the amount of taxes I'll have to pay to, I guess, the IRS? Do I pay even when reinvesting all proceeds into business growth? Tnx!
Your situation is complicated and we definitely recommend consulting with a professional. This video does not include discussion around tax treaties and focuses solely on effectively connected income. GENERALLY SPEAKING if you are in a treaty country you have to look into the definition of permanent establishment. If permanent establishment does not include 3PL services, then you should be fine. We obviously still recommend that you file protective tax returns (5472 and 1040NR). As mentioned before, be smart and do consult with a professional about your specific situation.
how about the sales tax? What if not charge it?
@@josdad please refer to this video on our channel:
th-cam.com/video/Cip6zqmrQM0/w-d-xo.htmlsi=xj3P2amMrWg8tqQM
Hi I’ve watched all 3 videos and they are amazing I just have a question.
So lets say you live in Ireland and you sell to the US Dropshipping from china and you register for VAT to get a return on the vat taxes you pay on your facebook ads. Do I then have to charge 23% VAT to my US customers and also still pay 23% VAT on revenue even tho I am selling outside the EU to the US? Or since I am selling to the US I don’t have to pay VAT but instead US Sales tax if so whats the percentage?
Our firm does not handle VAT compliance - our recommendation is that you find an accountant more familiar with European VAT. If you are operating through a European business entity then VAT is mostly likely much higher risk. If you're operating through a US business entity it gets a bit more complicated, but it is far less risky operating through a US entity.