Selling on the US market from Canada?
Im curious if it is at all possible to sell on the US market with US products from Canada??
Do we need to file taxes in both countries to sell in both?
Do we also need to register companies and bank accounts in both?
Selling on the US market from Canada?
Im curious if it is at all possible to sell on the US market with US products from Canada??
Do we need to file taxes in both countries to sell in both?
Do we also need to register companies and bank accounts in both?
18 replies
Seller_X9AxWaXfNnGAl
It depends on how you want to do it.
You don’t need to file US taxes, if you ship direct to the customer from Canada. That will be more expensive (and less competitive) than US domestic sellers who ship within the country.
If you plan to use FBA, it gets more complicated. You either for a new US company or register your Canadian company in the US. You would need to pay US taxes for your US earnings, but the US taxes paid would be covered under the tax treaties so that you don’t need to pay taxes on the same amount in Canada. There will be a tax deduction.
A US bank account is optional, but it will cost you more for foreign exchange. If you have US suppliers, you would be better off with a US bank account.
Dave
Seller_dbZYTOVJWVUX3
I sell in the USA and Canada using FBA, but am a UK resident. I think you’re best speaking to a CPA who is familiar with sales and income tax because it’s difficult to reverse the wrong decision. Meridian handle Canada and USA and are a bit pricey but very helpful and competent.
In short, my answer would be yes to sales taxes in both countries (assuming you’re using FBA)
Income tax will probably just be your country of residence.
Google FBA sales tax as this is a minefield for Amazon sellers at the moment.
Seller_hHiSdgOSPQSIi
I just started selling in the USA on .COM and having a hard time despite being brand registered 2.0 as the US market is super competitive. So far we have been to ship to Amazon FBA since the shipments since all shipments were under $800 but now I don’t what will happen as we now got a notice we need to provide the final purchaser name and address … how can we do that since the product is not sold yet ?
I have only a Canadian dollar account so I lose a bit in the conversion but I’m only about 1-2K in month in the USA but I feel I have huge potential if I could work out the logistics
Seller_IGYvmB5Qbu2FC
I am not a expert ( disclaimer) but my understanding is to take advantage of the US market you have to ship from within the USA. So your Canadian product needs to be shipped from address A within the USA to the FBA address therefore no custom fees. However to get your product into the US you will incur customs fees. So look into that first before listing on the dot com. And add that to your margins. Getting a US bank account should be beneficial either way in my opinion, however check with your CPA.
