Drop Shipping & FBA TaxAnswered

Etsy collects sales tax for marketplace orders, but what about my Shopify site for the same products?

IP
isabel_ph_d3a8new member
November 15, 2024 1,960 views 1 answer
etsyshopifymarketplace-facilitatorphilippinessales-taxmultichannel

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.

Related Questions

DropshippingAnswered

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...

PI
priya_in_d4cc·Nov 17, 2024
1,8701
DropshippingAnsweredFeatured

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...

AP
ahsan_pk_fda4·Nov 9, 2024
2,5101
DropshippingAnswered

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...

KT
kevin_tw_95ae·Nov 13, 2024
2,2301
DropshippingAnsweredFeatured

My supplier ships from China to U.S. customers. How do I know whether my LLC is the importer of record?

I am in Vietnam and run a dropshipping store through a Wyoming LLC. Orders are about $9,000 to $12,000 a month and the supplier in Shenzhen handles almost all shipping logistics. Sometimes they say du...

TV
trang_vn_cb85·Nov 7, 2024
2,7901
DropshippingAnswered

My broker files the customs paperwork. If something is wrong, is my LLC still responsible?

I am based in the UAE and sell products into the U.S. through a Delaware LLC. We recently started importing small batches for faster fulfillment, and a customs broker handles the entries. Revenue is a...

H2
hamad_20b6·Nov 19, 2024
1,7101
DropshippingAnswered

If I never store inventory in the U.S., is my dropshipping LLC usually safer from ECI?

I am in Nigeria and run a small dropshipping business through a New Mexico LLC. Products ship from China to U.S. customers and I do not keep inventory in the U.S. Revenue is only about $60,000 for now...

TN
temi_ng_4419·Nov 11, 2024
2,0701
EcommerceAnsweredFeatured

Amazon collects tax on marketplace orders, but what about my Shopify site orders fulfilled with Amazon?

I am based in Mexico and run a U.S. LLC for a small supplement brand. Most sales are on Amazon, but I also have a Shopify store and use Amazon's fulfillment network to ship some direct website orders....

DM
diego_mx_3fd0·Nov 1, 2024
2,3801
EcommerceAnsweredFeatured

Amazon collects tax on my FBA orders. Why are people still telling me to review state nexus?

I am in India and use a Delaware LLC for an Amazon FBA private-label business. Revenue is around $260,000. Amazon shows marketplace tax collection on many orders, so I assumed the sales tax issue was ...

KI
kabir_in_c725·Oct 24, 2024
2,8701
EcommerceAnswered

What are marketplace facilitator laws and how do they affect my foreign LLC's sales tax obligations?

I keep seeing the term 'marketplace facilitator' but I don't fully understand what it means for me as a foreign LLC owner selling on multiple platforms. I sell on Amazon, my own Shopify site, and some...

RB
rafael_br_4ae0·Feb 21, 2021
1,3451
EcommerceAnswered

Some of my sales come through Shop and some through my Shopify website. Should I book them differently?

I run a skincare ecommerce store from Singapore through a Wyoming LLC. We have around $210,000 annual revenue. Some U.S. orders come through the Shop channel and some come through our own Shopify chec...

AS
alicia_sg_dd85·Oct 30, 2024
2,0401

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/mo

Disclaimer: 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.

Watch the walkthroughs