Dropshipping to the US from Europe

Hi,

I would like to dropship to the US, and I live in Europe. I have found a US-based dropshipper, who is willing to work with me.

Do I need to get a US Tax ID to start selling? Or do I just charge the customer directly from Europe and send the order to the dropshipper?

As an extension, do I need to set up a business in the US somehow in order to sell online to consumers in the US? Or do I again just sell the products and send the order to the dropshipper?

I know that was a lot of questions - Thanks for your replies!

Hi Claus,

It's no to both questions :)

When a US supplier requests tax id, that is usually aimed at US customers, many will not require that id for international customers. In the event that they still do, then they will usually accept your countries equalivent.

In regards to needing to setup a US business, not at all. The only thing that will limit you in sales with a dropshipping business model is where they will ship to. So if a supplier ships worldwide, you're able to sell in any country from where you are located.

Cheers

Hi Mark,

Thanks for the reply. Does that mean that I will not have to pay sales tax at all? Or will i just have to pay sales tax in my own country?

My dropshipper is saying that they will add sales tax on their side to all orders, unless I ask them not to because I am exempt. Does that mean that I should tell them not to add the sales tax? It is a little confusing to me hehe, because I feel like the tax needs to be paid somewhere?

If they have sales tax applicable, just have them apply it. Just remember to include that sales tax amount in your total listed price so the customer doesn't get any nasty surprises :)

Ok thanks Mark! :)