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Starting dropshipping Business from Canada?

by adrian1996
4 replies
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I'm starting a dropshipping business and I currently live in Canada. As long as the business is registered in Canada & my province will I run into any legal/tax issues if my suppliers are from the states?
I'm not planning on selling to people in the states, but I am planning on using American suppliers.

Thanks
#business #canada #dropshipping #starting
  • Profile picture of the author Splatterfox
    Originally Posted by adrian1996 View Post

    I'm starting a dropshipping business and I currently live in Canada. As long as the business is registered in Canada & my province will I run into any legal/tax issues if my suppliers are from the states?
    I'm not planning on selling to people in the states, but I am planning on using American suppliers.

    Thanks
    You won't have any problems at all. I only know German (and some European) Tax Laws, but if you keep anything organized there should be nothing to worry about.
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  • Profile picture of the author diceallion
    That's a fantastic question and something I was wondering myself. Thank you
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  • Profile picture of the author james flynn
    Originally Posted by adrian1996 View Post

    I'm starting a dropshipping business and I currently live in Canada. As long as the business is registered in Canada & my province will I run into any legal/tax issues if my suppliers are from the states?
    I'm not planning on selling to people in the states, but I am planning on using American suppliers.

    Thanks
    If your business is registered then you're liable to charge HST/GST from a foreign supplier. Therefore , you have to be organized in this case.Usually CRA overlooks businesses that make a net of around $30K per year. But if your gain is more than that make sure that your logs are always updated.

    James
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  • Profile picture of the author dave_hermansen
    There will be no taxes of any kind owed to any entity in the United States. You may be liable to collect and remit Canadian taxes to goods shipped to Canadians and will, of course, be subject to any Canadian income taxes. This is question you should get qualified advice on from a Canadian accountant and not people on the Warrior Forum.
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