Based in the US and drop shipper is not

Full Member
  • Posts: 1
  • Joined: 24 Oct 20
  • Karma:
9 Dec 20 07:09:39 pm
Hi everyone.
We have entered into a new drop shipping agreement with a company based outside the US and they are sending the products direct to our US customers.
Will there be any import duties for us to worry about, or is that the responsibility of the drop shipper?
Also, i assume we will be responsible for charging sales tax to our customers here. Do we charge sales tax based on where we are located or which state the customer is in?
Basic questions for a lot of you guys i'm sure, but were a start up, so any help is very much appreciated.
Many thanks in advance..

Site Admin
  • Posts: 345
  • Joined: 23 Mar 15
  • Karma:
23 Jan 23 04:19:20 pm
Generally in the US, you only pay import duties for goods valued over US$800. Other than that, you only have to pay for shipping fees which the supplier normally provides on their website for certain locations.

Now sales tax is a different story. All sellers with sales tax ID are obligated to collect sales tax from their customers for every sale they make. Also, you only charge sales tax to buyers with the same location as to where you operate your business. The sales tax collected will then be filed come tax season.

Hope this clarifies.


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