Corporation in Ontario, Canada but, selling in USA (CRA or IR)
Hi,
I have a company incorporated based out of Ontario, Canada. I am planning to sell on Amazon USA by sending inventory to the Amazon warehouses in the USA. I will be sending the inventory directly from China to the USA, and the supplier will take care of the customs and clearance. What registration do I need to get from the US government or tax department to do business? Will I be filling for taxes in Canada CRA or USA IRS? Or both? Or is there a simpler way?
Corporation in Ontario, Canada but, selling in USA (CRA or IR)
Hi,
I have a company incorporated based out of Ontario, Canada. I am planning to sell on Amazon USA by sending inventory to the Amazon warehouses in the USA. I will be sending the inventory directly from China to the USA, and the supplier will take care of the customs and clearance. What registration do I need to get from the US government or tax department to do business? Will I be filling for taxes in Canada CRA or USA IRS? Or both? Or is there a simpler way?
1 respuesta
JiAlex_Amazon
@adn_ventures_inc
Based on your situation, as a sole proprietor based in Ontario, Canada, planning to sell on Amazon.com (the U.S. marketplace) by sending inventory directly from China to Amazon's U.S. fulfilment centers, you may need to obtain certain registrations or permits from the U.S. government or tax authorities.
It's essential to consult with a tax professional or an accountant familiar with cross-border taxation and e-commerce regulations to ensure you comply with all necessary requirements and file the appropriate tax returns and registrations.
Here are a few key considerations and resources:
Employer Identification Number (EIN): Even though you are a non-resident of the U.S., you may need to apply for an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). This number is used for tax reporting purposes and is required for non-U.S. businesses operating in the U.S.
You can apply for an EIN online through the IRS website:
Get an employer identification number
State Sales Tax Registration: Depending on the states where your inventory is stored (Amazon's fulfilment centers) and where your customers are located, you may need to register for sales tax collection and remittance in those states. Each state has its own rules and regulations regarding sales tax obligations for remote sellers.
You can find more information on state sales tax registration requirements on the Amazon Seller Central website:
State Tax Registration Numbers
U.S. Income Tax Obligations: As a non-resident alien engaged in a trade or business in the U.S., you may be subject to U.S. income tax on your effectively connected income. You may need to file a U.S. income tax return (Form 1040-NR) and potentially make estimated tax payments.
JiAlex
