Hey, @Psyamori. Establishing a company in Canada with the intent to ship products to a US-based third-party logistics provider (3PL) for distribution to US customers involves specific tax considerations: 1. GST/HST: When you export goods from Canada to another country, such as the United States, Canadian GST/HST generally does not apply to these exported goods. 2. Customs and import Taxes: On entering the United States, customs duties or import taxes may apply unless the goods are specifically duty-free under trade agreements or specific exemptions. 3. US sales tax: The United States does not use a taxation system like Canada. Instead, it employs a sales tax system that is managed at the state level. Depending on the specifics of your operations and the state laws where your 3PL is located, you may need to register to collect and remit sales tax if you meet the nexus criteria in that state. I'd suggest consulting with a tax professional experienced in cross-border commerce, who can provide valuable guidance and ensure compliance with all applicable tax laws.

Did you find an answer? I am in the same situation.

Hey @brentcoburn919. It's important to clarify a few things to determine your sales tax obligations. The key factors include who invoices the customer and the location of your business in relation to your customers. Printify handling the shipping doesn’t automatically exempt you from sales tax responsibilities. In the US, you need to consider whether you have a 'nexus' in any state where you sell goods. A nexus is typically established through physical presence, economic activity, or both, and it obligates you to collect sales tax in that state. If you are buying products from suppliers to resell them, you might be eligible for a resale exemption, which allows you to purchase goods without paying sales tax. To do this, you’ll need to obtain a resale certificate valid in the states where you do business. Remember, these rules vary by jurisdiction, so it’s a good idea to consult with a tax professional to ensure compliance.

Hello @jam4954, that certainly sounds like an unusual issue! Have you reached out to Shopify support yet? They would be best equipped to help diagnose and resolve this problem for you.

Did you ever find your answer? I'm in Alberta and wondering the same thing for my Shopify store. And for selling to other countries. It's too complicated!

@@kbee33 I’m pretty sure having shopify tax is enough. I set my currency for Canadian Dollars and for my home market I have tax information set up so any product in Canada is charged tax. Anything that’s abroad will have its on duty fees I thiiiink that’s how it works? So recently I shipped to Ireland. It wouldn’t make sense for someone from Ireland to pay tax on a product that isn’t used here - so I think those numbers are crunched into the Canada Post shipping cost price and if there is any VAT the customer will just have to pay it when the item reaches their destination. Don’t quote me on that but that’s how I’ve come to kinda understand it.

@@kbee33you just have to charge tax within Canada you don't need to charge International deliveries

Hey there! I totally get how confusing tax regulations can be, especially with all the information out there. For your digital products, since you're in Canada and selling to EU customers, you do need to charge VAT, regardless of how much you're making. The EU has specific rules for digital products (like e-books, online courses, etc.) that require sellers from outside the EU to charge VAT at the rate of the customer's country. This means you’ll need to register for VAT in an EU country to comply with these rules. When it comes to the merch you'll be launching with Printify, the situation is a bit different. If you're below the VAT threshold for distance sales, you don’t need to charge VAT initially. But once you exceed that threshold, you’ll need to register for VAT and start charging the local VAT rates, using the IOSS scheme. I hope this clears things up a bit! However, I highly recommend reaching out to a licensed tax advisor to ensure you’re fully compliant with all regulations and to get advice tailored to your specific situation.

@@Sufio This helps me a lot, thank you for your response!

Thanks for reaching out with your question. When it comes to setting up taxes for international sales via your print-on-demand service through Shopify and Printify, the details can indeed get complex. Here’s a simplified breakdown to help guide you: 1. Location of your business and customers: Knowing where your business is officially based and where your customers are located is crucial. Since you're operating from Pakistan and targeting international customers, different tax rules apply depending on each customer's country. 2. VAT and customs duties: Typically, VAT (Value Added Tax) is charged to the final customer in the country where the goods are consumed. As an international seller, you might need to register for VAT in each customer’s country if your sales exceed certain thresholds. Additionally, remember that customs duties may apply when shipping internationally, which can affect how much your customers need to pay upon receiving their goods. 3. Specific rules for different regions: 3.1. European Union (EU): You’d be considered a deemed supplier. For consignments under EUR 150, you could opt to register for the Import One Stop Shop (IOSS) to simplify VAT payments. However, if a consignment exceeds EUR 150, the IOSS cannot be used, and VAT and customs duties will typically be the responsibility of the customer unless you arrange to pay these on their behalf. 3.2. United States (US): Sales tax requirements vary by state. You only need to collect sales tax in states where you have a nexus, which can be a physical presence or a sales threshold that you surpass. Given the complexity and the potential financial implications, I strongly recommend consulting with a tax professional who can provide specific guidance based on the full scope of your business operations. This will ensure compliance and help you understand all applicable tax obligations fully.

My Shopify store is mainly children's clothing and shoes along with other children's products based in Ontario Canada. The PST portion is not taxed on these items. I have added tax overrides for each collection andwhen I add children's clothing to checkout the override is not working. How to correct? Or, how to contact Shopify to report the error? I need a real person to speak with.