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Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
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Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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We are a Hong Kong based company (limited). We have authorised

Resolved Question:

We are a Hong Kong based company (limited). We have authorised a USA company to run a webshop on behalf of us but webshop server is located in Germany. The USA company collects payment for us and they charge certain percentage of service fee according to the revenue. The buyers are 2/3 from USA, 1/3 from global. We issue invoices to all buyers from our HK company. My questions:

1. Do we need to file any tax return for our income in USA ? If yes, how to do that?
2. Do you have any good advice about the webshop business structure to run globally?
Submitted: 5 months ago.
Category: Finance
Expert:  Rakhi Vasavada replied 5 months ago.

Rakhi Vasavada :

DearvFriend,

Rakhi Vasavada :

Hello and welcome. Thank you for providing an opportunity to assist you.

Rakhi Vasavada :

The answer to your question would be plain and simple NO.

Rakhi Vasavada :

You are a company based in HK and the US firm is just a vendor for you from whom you purchase professional service and you pay for it.

Expert:  Rakhi Vasavada replied 5 months ago.

Dear Friend,

Hello and welcome. Thank you for providing an opportunity to assist you.

The answer to your question would be plain and simple NO.

You are a company based in HK and the US firm is just a vendor for you from whom you purchase professional service and you pay for it.

There is no need to file any returns or any such thing as you are not based in the US. Yours is a web shop and your model is correct.

I am sure this would help.

You may please leave a positive rating if this helps as this ist the only way we get compensated for assisting you. Alternatively please feel free to reply back if you need further assistance.

Warm Regards

Styles
Customer: replied 5 months ago.

Hi Rakhi,


 


Thanks for your reply.


 


How about if we ship the goods to our agent in USA and this agent help to ship the goods to individual buyers in USA or Canada. Does that makes any difference? It means that the ownership of the goods still belongs to us when the goods arrive in USA. The ownership only switch to buyers after they places and pay the order. In Europe, we need to register a VAT number there in order to hold the ownership. How about in USA?


 


 

Expert:  Rakhi Vasavada replied 5 months ago.
Dear Victoria,

Hello and welcome again. Thank you for your follow up reply.

Even then, it would make no difference as the agent is your agent in his own individual capacity and your HK based company will not have any filing requirements there in the US as I understand.

In Europe, if you hold the ownership, then YES, you will have to register for the VAT.

I am sure this would help.

You may please leave a positive rating if this helps as this is the only way we get compensated for assisting you. Alternatively please feel free to reply back if you need further assistance.

Warm Regards

Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 3759
Experience: Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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