The Entrepreneur Forum | Financial Freedom | Starting a Business | Motivation | Money | Success

Welcome to the only entrepreneur forum dedicated to building life-changing wealth.

Build a Fastlane business. Earn real financial freedom. Join free.

Join over 80,000 entrepreneurs who have rejected the paradigm of mediocrity and said "NO!" to underpaid jobs, ascetic frugality, and suffocating savings rituals— learn how to build a Fastlane business that pays both freedom and lifestyle affluence.

Free registration at the forum removes this block.

Need Help on US Sales Tax for EU Digital Good Ecommerce

Taxes and regulation

Jeix

Bronze Contributor
Speedway Pass
User Power
Value/Post Ratio
191%
Oct 1, 2018
116
222
29
Milan, Italy
Hello fastlaners. I'm gathering info on how to handle this side of a business I'm starting and need your help.

As you may or may not know, any online business in the EU has to pay VAT tax to the corresponding European country based on where their customers bought their goods or services. To make things easier, we can join a government program that every country has and that it will help you with all this (at least in theory, whether it works or not remains to be seen, as it's rolling in starting July 2021).

However, I could not find any such thing for the United States (and honestly haven't looked into countries such as Canada, Australia or any non-English-speaking country outside the EU yet).
Does any of you know how it works (at least) for the US?
Suppose I'm selling digital goods like mp3 files to a US customer and my company is based in Italy. Do I need to have any relation with the US tax authority or not?
Thank you in advance to any of you willing to help me figure this out!
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

Tourmaline

Gold Contributor
Read Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
User Power
Value/Post Ratio
120%
Jun 4, 2019
898
1,082
Texas
Nope, you don't need to collect taxes for sales in the USA if you're in the EU:

Even if you're in the USA, you typically don't collect sales tax unless you're based in the state that you're selling to. But that does vary by state here. So I only need to worry about sales tax if I sell to someone in Texas since I'm based in Texas.

Our sales taxes are state based, not federal based.

But I'm not a tax expert so you probably do want to find out for sure!
 

c4n

Full throttle
FASTLANE INSIDER
Read Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
User Power
Value/Post Ratio
265%
May 30, 2017
379
1,004
I use mycommerce.com to sell digital goods around the world. They take care of all the taxes, including VAT in the EU and sales tax in the USA. They also issue invoices to customers so I don't have to.

They are not perfect, but I gladly pay their fees to take this off my mind.
 

Post New Topic

Please SEARCH before posting.
Please select the BEST category.

Post new topic

Guest post submissions offered HERE.

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Ideas needing execution, more!

Join Fastlane Insiders.

Top