Ask HN: Does a Canadian online retailer have to pay US taxes on US sales?

Re:Ask HN: Does a Canadian online retailer have to pay US ta... by patio11 on Thursday August 24, 2017 @09:10PM (#15095401)

As we grow the business in the States, do we have US tax liability even if we don't have a physical presence?

Possible but unlikely; talk to an accountant. It will depend on a variety of facts which are difficult to assess from your post.

Do we have to collect US sales tax?

If you have a nexus (physical connection) in a US state, you may be required to collect and remit sales tax. Historically, it would be pretty easy to judge that you don't have a nexus. However, states are starting to become more expansive in their definition of what would create one. You may need to talk to an accountant.

Opening a warehouse in the US will almost certainly result in you having a nexus in the US state in which you open the warehouse, which will result in an obligation to collect and remit taxes for that state.

[ Parent | on HN ]

Re:Ask HN: Does a Canadian online retailer have to pay US ta... by cmdlinerambo on Thursday August 24, 2017 @09:20PM (#15095440)

If there is a warehouse in the states do you have to pay income taxes of just collect sales taxes? I know I need to find a good accountant...thanks for the recommendation.

[ Parent | on HN ]

Re:Ask HN: Does a Canadian online retailer have to pay US ta... by patio11 on Thursday August 24, 2017 @10:23PM (#15095667)

You need to talk to an accountant and say the words "tax treaty" and "permanent establishment" then listen very carefully to what they say.

[ Parent | on HN ]