Etsy collects sales tax for marketplace orders, but what about my Shopify site for the same products?
I am in the Philippines and sell the same handmade products through Etsy and Shopify using one Delaware LLC. Etsy clearly says it remits U.S. sales tax for qualifying marketplace orders, but Shopify is only showing tax liability monitoring. Combined revenue is about $95,000.
I am worried because I initially assumed Etsy handling the tax meant I had basically solved the U.S. sales tax issue for the whole business. Now it looks like the same products may be treated differently depending on the channel.
Metered Q&A
Expert answer available
Checking your reading access. The answer will open in full when a free view or membership access is available.
Related Questions
I sell on both Amazon FBA and my own Shopify store — what's the hidden tax trap?
My foreign-owned US LLC sells the same products both through Amazon FBA and through my own Shopify website. Amazon collects sales tax on the marketplace orders, so I assumed I was mostly covered. A fr...
Is Illinois really different on FBA inventory used only for marketplace orders?
Someone told me Illinois treats FBA inventory differently from most states — that inventory used only to fill Amazon marketplace orders does not create physical nexus there, unlike California or Penns...
Does FBA inventory create sales tax physical nexus even if Amazon collects the tax?
Amazon already collects and remits sales tax on my marketplace orders under marketplace facilitator laws. So does the fact that my FBA inventory physically sits in warehouses across several states sti...
If Amazon already remits the sales tax, do I still have to register in those states?
Since Amazon collects and remits sales tax on all my marketplace orders, do I, as a foreign-owned LLC selling only on Amazon FBA, still have to register for a sales tax permit in the states where my i...
If I have a US trade or business through FBA, how much of my sales income is actually ECI?
Suppose I accept that my Amazon FBA activity gives me a US trade or business. Does that automatically mean all my sales profit is effectively connected income, or does it depend on where the sales are...
My supplier sends samples and paid inventory shipments differently. Should duties be tracked separately?
I am based in India and use a U.S. LLC for an ecommerce brand. We import product samples one way and later larger commercial shipments another way. My broker handles the customs side, but our accounti...
Amazon spread my FBA inventory across several states without telling me — am I now exposed in all of them?
I started FBA expecting my stock to sit in one or two warehouses, but Amazon distributed it across many states for faster shipping, and I only found out from a report. Does that mean I now have tax ex...
A California warehouse will store my bestsellers. Is that enough to make my LLC's income effectively connected?
I am based in Pakistan and use a Delaware LLC for an ecommerce brand that started as pure dropshipping. A 3PL in California now wants to store our top products for faster delivery. Annual revenue is a...
I used to ship direct from Asia but now I am considering FBA. Is that basically a tax line in the sand?
I am based in Taiwan and run an ecommerce brand through a Delaware LLC. So far we have shipped everything directly from Asia, but Amazon FBA could improve conversion and delivery times. Annual revenue...
Does storing my inventory in Amazon FBA warehouses create ECI for me as a nonresident?
I'm a nonresident foreign owner of a single-member US LLC (disregarded). I sell physical products on Amazon and use Fulfillment by Amazon, so my stock physically sits in US fulfillment centers, and Am...
Have a similar question?
ForeignLLCTax members get expert answers with IRS citations. One CPA consultation costs $200+. Full access is $9.99/month.
Become a Member — $9.99/moDisclaimer: All content on ForeignLLCTax.com is created by a tax professional and is provided for general educational and informational purposes only. It does not constitute tax, legal, or accounting advice, and should not be relied upon as such. Every tax situation is different — for advice specific to your circumstances, please consult a licensed CPA, Enrolled Agent, or tax attorney. By using this website, purchasing a subscription, or accessing any tools or services, you acknowledge that no client-professional relationship is established between you and ForeignLLCTax.com or its operators. This website is not affiliated with the IRS.
