Drop shipping to USA from Aus, do I need to collect taxes?

Hi,

Just confirming that if I was to drop ship in the USA but I am physically in Australia, and my products are coming from China, that I don't need to collect taxes from my sales?

2nd scenario: What if my drop shipper is from USA and I will sell to USA? Will it be same rules on taxes?

Thanks,
Edna

Hi Edna,

Your tax responsibilities are only ever to your local tax authority, that is where you reside and pay your personal taxes. It doesn't matter where you buy something from or where you sell it, your tax obligation is always to your local tax authority.

So if you are in fact in Oz, then that is, of course, the ATO (Australian Tax office)

Cheers

The standard implemented by the United States is that imported products with a value of less than $ 800 do not need to be taxed.