Based in UK, selling in the US - Tax Help Required
Hi there Guys :)
We have just recently launched our first Dropshipping store. We are based in the UK, However we will be targeting and making sales Primarily in the USA.
That said, how do we go about setting up Store Taxes? For example, Joe buys a Hoodie from us. Joe lives in Austin,TX. Since we dropship, Joe's product goes directly from the alixexpress/oberlo supplier to Joe himself. So it never enters UK territory, never passes through our hands. I would assume that we'd have to pay taxes for the USA, since that's where the purchase was made. What about us though. Do we have to set up any tax for the UK considering we are operating from here (like income tax or something akin to that - sorry, not a tax savvy person, hence the question). Anyone with the same situation as ours that made it work, and if so, how?
We'd really appreciate an answer to this, so that we can operate without any future issues with our revenue.
Thanks in advance :)
Rob and Mac