inexperience tax collection

[MrPRinson]

Hi guys,

Just wondering whether anyone has any experience with tax collection on an international eCommerce site? my domains are hosted in the europe and most of my income comes from US customers. I should mention that I am not incorporated and do not have my business name registered.

Who do I charge sales tax to? People in an arbitrary US state I select to be the home of my "US" business? Something else altogether?

I am inexperienced in this so any advice/help would be greatly appreciated!

Thanks

 

[Marc]

Hi @MrPRinson,

if you are running an eCommerce site I'd highly suggest you to register yourself as a company. I don't know from which country you are, but e.g. for the UK the lowest, but most popular registration form is the Ltd.

Once you are a registered merchant (for the registration you should calculate about $ 100) you will also get your official VAT number which you have to insert along with your contact details into your Terms of Service (TOS) page on your website.

If we are talking about the TOS: When you are running an eCommerce site, the usual disclaimer and privacy policies are not enough. You also NEED (!) a Terms of Service (TOS) page including your contact and relevant tax details.

Now to your actual tax question: You give your taxes always to the country and to the community in which your main residence is registered, independent from which countries your customers and buyers are. Simply