If you are a U.S. business, how do you pay the tax on an international sale?

by 13 replies
19
Hello,

Let's say you have a U.S. business. If someone in the United States makes a sale, understanding the tax rules is easy.

But what if someone from another country bought something from you? Is there some tax you pay to that country? How/when do you pay this tax?
#main internet marketing discussion forum #business #international #pay #sale #tax
  • As I understand it, the money is being paid to you in America, so you pay America. If I'm wrong on that, I could be saving a thousands, but most likely I am not.
    • [1] reply
    • In most cases, you will not have to pay an additional tax if your company is located in the US and you sell to someone from another country. However, there are other considerations such as tax treaties, nexus, etc.

      You need to provide more information. For instance, does your company maintain a sales force, satellite office or manufacturing/warehousing facilities in that country? These may establish nexus within that country and make you subject to tax.

      My advice to you would be to contact your CPA and discuss this issue with him. Soliciting tax advice on a forum is a big mistake. I am a CPA and a member of a number of affiliate marketing forums. Most tax advice given on forums is dead wrong and you simply cannot convince people otherwise. As a result I no longer debate tax issues in forums.

      If you are in business and intend to stay that way, please find yourself a competent CPA in your area and pay him for his/her advice. It will be some of the smartest money you ever spent. Again, please ignore tax advice from forums.
      • [1] reply
  • If you are in the US and someone buys from you, you pay only US taxes. The persons buying the product is responsible for what they buy.
  • Contact an accountant or the tax man

    usually you only charge tax for people in your country or your state
  • I take the current exchange rate between the two countries as of GMT -5, then add in the square root of the cost of 2.19 troy ounces of gold at the close of trading the previous Tuesday. After that I will read the tea leaves and roll three sets of dice (four sets if any two concurrent rolls total an even number), and multiple by pi. However, if the number is greater than it was the last time (unless done in an odd-numbered month) then I will double it after subtracting the nearest prime number (but never rounding up). Once that's all done I realize that I'm no expert on tax law, so I just keep track of everything and let my accountant figure it out...I would suggest you do the same.

    All the best,
    Michael
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