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TaxRobin
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Category: Tax
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Experience:  International tax
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I am a UK national and will be selling online products in the US. Products will be sold online via Amazon.com (US not UK site) through my Ltd Company which is UK registered.
I understand the UK tax side of things whereby I will pay corporation tax through the Ltd Co. but need clarification on what tax if any needs to be paid in the United States by my company or myself as an individual?
Please can you clarify the US tax implications for me what if any taxes I will be liable to pay in the US?

Submitted: 1 year ago.
Category: Tax
Expert:  TaxRobin replied 1 year ago.
HelloIf your company is not in the US, has no US office, and has no agent in the US selling or doing business for your company there is no US tax on the business.If you are not a US person or physically in the US making sales there is no US tax.There may be sales tax on the items but Amazon generally will take care of that for you. Sales tax is like VAT but is a US state tax not a federal. Each state makes their own Sales Tax laws.https://www.amazon.com/gp/help/customer/display.html?nodeId=468512 Your business income is not taxable in the US.
Customer: replied 1 year ago.

Hello, thanks very much for your answer.

To clarify the position on sales tax, it seems Amazon requires non US sellers to complete a W-8BEN form for individuals to be exempt from Sales Tax, however if I am trading as a Ltd Co, I don't think I can use that form as it is for individuals only.

Are you familiar with these forms and as a Ltd Co, would I complete a W-9 form or is that only for US companies?

Expert:  TaxRobin replied 1 year ago.
The W8 BEN is required so the requester has it on file that you are not a US person or your business is not a US entity.The W9 is only for US persons or entities.You need the W8 BEN Ehttps://www.irs.gov/pub/irs-pdf/fw8bene.pdfI know rating takes an additional step and I truly appreciate it when you take the extra time!
Customer: replied 1 year ago.

Thanks for the clarification.

So if I complete the W8 BEN E form for my Ltd Company, that is everything I need to do from the US tax side of things?

So in a nutshell, I will pay my Corporation Tax in the UK for tax on income and will be exempt from US Sales Tax after completing the above form? So nothing else needed to do to start trading in the US?

Expert:  TaxRobin replied 1 year ago.
The W8 BEN E does not exempt you from sales tax. It allows Amazon to pass the money on to your business without withholding US Tax.The sales tax in the US is paid by the buyer. The seller collects the sales tax but then passes that on to the state.You should not have to do anything else for income tax in the US if you complete the W8 BEN E
Customer: replied 1 year ago.

1. 'The W8 BEN E does not exempt you from sales tax. It allows Amazon to pass the money on to your business without withholding US Tax.'


So the W8 BEN E form is for exemption from paying US income tax? Nothing to do with Sales Tax?

2.'The sales tax in the US is paid by the buyer. The seller collects the sales tax but then passes that on to the state.'


Does this mean Amazon takes care of collecting the sales tax and passing it on to the state so I do not need to do anything for collecting/passing on Sales Tax or for reporting to IRS?

Sorry if I sound confused, I just want to ensure I have covered all aspects and am not missing anything.

Thanks!

Expert:  TaxRobin replied 1 year ago.
The W8 BEN E has nothing to do with sales tax.The sales tax issue is to be taken up with Amazon. Please refer to Amazon and their policy as it relates to their fulfillment centers in different US states.
Expert:  TaxRobin replied 1 year ago.
My answer addressed your initial question, please rate below or above (let me know if you have difficulty as I believe the system changed.
Customer: replied 1 year ago.

Ok thanks for clarifying.

Are you US or UK based?

Expert:  TaxRobin replied 1 year ago.
I am based in US with international tax
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Category: Tax
Satisfied Customers: 14408
Experience: International tax
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