Hi @Taz168. What you found is very true. When shipping products to any state other than your own, or when shipping to any other country, you must register for a tax ID number in that district and collect and file taxes on their schedules. Since this is a nightmare to try to do manually — in fact it would be impossible — retailers who ship usually integrate a third-party app with their Square account. Click here for one such app, called Quaderno, which includes a number of countries including Australia. There is a monthly fee for any of these. That’s because these companies have to follow sales tax/GST updates for all countries to be sure that you are in compliance at all times. Also, most of these companies file sales tax returns for you and submit payments to the appropriate authorities so you don’t have to worry about it.
It usually doesn’t matter how much, or how little, you sell somewhere else. You almost always have to collect and remit taxes and file returns regularly. In some cases, retailers determine they can’t ship internationally unless they can justify the cost of this type of service. Also, I’d be remiss if I did not point out that if you have been shipping to other states and to Canada, and you aren’t registered with those that require it and remit taxes and submit returns, you could be open to fines and more. Most states in the US that charge sales taxes require retailers to collect taxes for goods shipped to their states and to file returns when sending those taxes to them.
Let me know if you need anything else.
Regards,
Hi @Taz168. What you found is very true. When shipping products to any state other than your own, or when shipping to any other country, you must register for a tax ID number in that district and collect and file taxes on their schedules. Since this is a nightmare to try to do manually — in fact it would be impossible — retailers who ship usually integrate a third-party app with their Square account. Click here for one such app, called Quaderno, which includes a number of countries including Australia. There is a monthly fee for any of these. That’s because these companies have to follow sales tax/GST updates for all countries to be sure that you are in compliance at all times. Also, most of these companies file sales tax returns for you and submit payments to the appropriate authorities so you don’t have to worry about it.
It usually doesn’t matter how much, or how little, you sell somewhere else. You almost always have to collect and remit taxes and file returns regularly. In some cases, retailers determine they can’t ship internationally unless they can justify the cost of this type of service. Also, I’d be remiss if I did not point out that if you have been shipping to other states and to Canada, and you aren’t registered with those that require it and remit taxes and submit returns, you could be open to fines and more. Most states in the US that charge sales taxes require retailers to collect taxes for goods shipped to their states and to file returns when sending those taxes to them.
Let me know if you need anything else.
Regards,
