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TaxRobin
TaxRobin, Senior Advisor
Category: Finance
Satisfied Customers: 13343
Experience:  15 years of experience in financial advising with emphasis on tax issues.
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I am creating a dropship service. I connect online eCommerce

Customer Question

I am creating a dropship service. I connect online eCommerce with Brands who want to dropship their products on eCommerce websites.
I know the eCommerce website has to pay their taxes based on where a product ships from and where it ships to. And the eCommerce website is responsible for this tax.
Once the eCommerce website sells the product, we charge the eCommerce website our price for it and then pay the Brand 15 days later.
What taxes do we need to pay? and why?
Does the Brand need to charge us a tax? and why?
Submitted: 1 year ago.
Category: Finance
Expert:  TaxRobin replied 1 year ago.
Hello and thank you for posting your question.
You would pay tax on the income you receive from the service you are providing as a middleman.
I can not see where the Brand would charge you tax.
Customer: replied 1 year ago.
Does the Brand need to charge us a tax? and why?
Expert:  TaxRobin replied 1 year ago.
I answered that above when I said "I can not see where the Brand would charge you tax"
You are not buying from them and even if you were you could claim exempt form sales tax as a reseller but that is not relevant.
You are a middleman.
Expert:  TaxRobin replied 1 year ago.
I believe I covered each question you posted, but please let me know.

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