Wholesale & eBay Forum Drop Shippers & Drop Shipping Any NZ based drop shippers here?

Any NZ based drop shippers here?


richardjfield
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6 Jul 17 10:46:13 pm
Hello All

I've just created a salehoo account and I am looking to drop ship from US suppliers to US customers only.
I'm based in New Zealand and have a couple of questions regarding operating from New Zealand.

Does anybody out there already do this?

Thanks
Rich


fudjj
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6 Jul 17 10:58:58 pm
Hi Rich and welcome to the forum,

We do have a few NZ members on-board, what are your questions?

In regards to your Nexus question, we have support staff researching that for you at the moment and we'll pass on what ever they can find as soon as they find it for you.


Mark (fudjj)

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richardjfield
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6 Jul 17 11:18:24 pm
Hi Mark

Thanks for the response and looking into that.

To be honest, my main questions are related to tax and Nexus.
I thought there must be some NZ based people in a similar situation to myself who have been through this already.

My main questions are:

Is my home state the state of the mailing address I used for my EIN?

Assuming yes, then that would make it New York State. When I look at the ST-120 form for resale exemption it asks if I am required to pay tax in New York State, or other. Here I've read conflicting information. One source says I should use my NZ GST number as I am based here. But another says, as I have an EIN and mailing address in New York, I should use that. Which would appear to mean applying to be a New York State Vendor. I did find this guide on Link hidden: Login to view, but still none the wiser.
Are there an NZ based drop-shippers who can shed light on this? Do I need to apply as tax vendor in the US?

Finally, I will be selling to customers all over the US, from different drop shippers, each of which may have their own nexus. This would imply that the tax calculation will be different in every case and could only be determined at sale time. This would seem to be a lot of work and something that would surely put off most small time dropshippers.
Given how many people make a living, or part time income from dropshipping, I get the feeling I must be missing something; over complicating things.
Is this so???


fudjj
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7 Jul 17 04:34:16 am
It's strange, but it's something that I've never seen come up before. Given that, my instinct tells me that it most probably doesn't relate to your situation, but I'm unsure die to you trading with the EIN. That may well be a game changer, so we really do need to try and research that a bit more for you.

Can I ask what the purpose is of trading with an EIN if you're only drop-shipping?


Mark (fudjj)

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richardjfield
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7 Jul 17 05:01:05 am
Hi Mark

I found salehoo as it was recommended by Sarah at Wholesale Ted - she uses it herself and may well be based in New Zealand.
It was her video that recommended getting an EIN - Link hidden: Login to view.

Rich


fudjj
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7 Jul 17 05:29:48 am
OK, just to clarify regarding drop-shippers requiring a tax id. Many of them will ask for this, but that is only applicable for US residents. In most cases, once you inform them that you are an international customer, then that is no longer applicable. In the rare cases that the supplier still requests that tax id, you can usually provide a local tax id.

In fact I can't remember ever hearing of a drop-ship supplier rejecting an account application based on an international customer providing a their local id and as I mentioned, most will not be remotely interested in that id once they know your are not located in the US.

So I think you're just making it a little difficult for yourself going down this current route, it's a lot less complicated :)

Cheers


Mark (fudjj)

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richardjfield
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7 Jul 17 05:35:18 am
Hmmm, It did feel more complicated than it should be.

But in that case I need to watch that video again, perhaps I missed something - since it is explicitly aimed at people outside the US selling inside the US. My main concern is forging ahead and then getting chased for unpaid taxes.

By local tax id, I assume you mean GST for NZ based people like myself.

Thanks again for looking into this.

PS .I see you are from the future - look at your join date ;0)


fudjj
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7 Jul 17 05:50:26 am
Your tab obligations are always to your own tax authority, in this case NZ. If you start trying to trade as a US citizen, then you are creating a tax burden for yourself in the US and honestly, I just can't see any benefit to that whatsoever.

That's a nightmare I would be avoiding at all costs lol

This really is very straight forward for you. Doubtful if they will require a tax id from you, but if they do, then yes, your GST id will be just fine.

Gee, now I feel old looking at the join day. Coming up on 10 years I've been haunting these old hallways as a member lol


Mark (fudjj)

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richardjfield
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7 Jul 17 05:58:50 am
Ah OK, so to clarify, I have two options.

1) Trade as an NZ citizen and then simply pay income tax in NZ; I won't need to pay US Sales tax.
2) Trade as US citizen (via the EIN), pay income tax in NZ and US sales tax.

That does appear to be a no brainer.

Doh! Think I need a break from the screen, I read that as 2017 not 2007.


fudjj
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7 Jul 17 06:17:08 am
Yep, option 1 is the hassle free way to run. No reason to complicate your tax obligations if you don't need to :)

lol, don't worry, screen strain is a occupational hazard in this business, you'll get used to it :)


Mark (fudjj)

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