Q & A Tuesday: Sales Tax for Foreign Amazon Sellers


hi this is michael beasley of amazing sbk all system cautiously ten k collective is the world's newest equal much poke cost it's kids today exact needs of six seven and eight figure amazon and ecommerce business leaders it's actionable but focused on how to scale your business and grow really fast for sale a lump sum profits not short time hacks we have indepth talks with real ecommerce sellers and expos in industry is like so saying team building and monitoring cash defined this just so she'll podcast app for ten k collective that's one zero case akito c a l l e c t i e v 0 we're live on apple podcasts google play android stitcher and spotify tonight but a few of the apps were rolling out to or you could get to ten k collective dot com for show notes or listen online i hereby introduce to you were telling me hey hey hey welcome to amazing sp i replaced the beef uk based amazon entrepreneurs i'm your host michael leaving welcome to the show folks welcome to q and i choose day is not every single cheese day but every so often put together a q and they choose day based around the questions that come up in our facebook group this is lousy she gets the knees off nukem us but as you'll hear today we've got a a newbie question more advanced question or at least a question with somebody he's doing some revenue and usa anyway so the first place to go if you wanna get questions on said and of course cd other questions announces the other people giving in the group is they face but group amazing s b h dot com forward slash s b that's amazing that's the friday before bessie eight also dot com forward slash s so face beef a book k amazing f b i dot com forward slash s b that's what today's question comes from okay so our next question is far more complex nuanced and i don't have to be honest about i've got some odds is so question from i think crease still see out of then if i get it right there we serve as a capsule but very well 'em so creased so if you name writes he says guys tax question from a foreign that presumably meaning outside of u u s a gun llc registered in delaware and i've talked to cpa's ea am one consultant cpa's told me i shouldn't file five four seven to eight sold me i should cpn consultant told me file what i four i know you told me i shouldn't i paid two and fifty dollars commissions the consultant but i saw this adopt his knowledge who should i listen to you should file five four seven to should file wonderful a an off how do you deal with your taxes thank you so i said this is next question which i think it is the question of taxes is specifically sales taxes is a really difficult question so i literally just interview today pull ruffles and his next but tax law who's on the couch and episode coming out soon on the podcast the tank let people cost which if you haven't listened to it yet is deeply specific seven and i think i am as in 'em says an ecommerce set us who sell on amazon to a degree that they emphasize only coming out in late july 'cause we've already got a ton of great interviews lined up but if if you'd like early access based on you're listening to this then email only we will be sold something out few so succumb to question them onto onto chris not properly obviously implies name multiple things the most important though being all you selling on amazon and i presumably talking about sales tax if it's income tax will corporate tax than i really can't help gave me a may have got the numbers wrong the question is what level of revenue all you at so it's hard to give advice but the simple summary of of pulls advice at least around a sales tax and i should new also if you're talking about sales tax and if you only sell on amazon and do not file anything do not registered with the states do not file taxes that said i am obviously not say textile any kind of like a never many people would disagree with that statement it just might just policy and what i understand into you know it could be that you've already registered for tax with some states all states that you you could be before in which case you were in a different situation so all i can say is on get in touch on that could put you in touch and pulled you want to explore further this email michael at amazing f b i don't come michael m i c h h e l at amazing f b i dot com amazing at the friday before but if off adults come i have no deal by the way i think american laws are allowed to make affiliate deals 'em but said they don't have one withhold avenue strong opinion on the way i'm not climbing any sales tax expertise whatsoever because it's a very complex area and clearly if people you know a lot more about me disagree absolute fundamentals then i can't claim to be more expose them and i do not i'm not what i am saying is absolutely he was looking into from the ground up the fundamental question is should you even read just a waste any states addle sales tax and the reason i understand from pool and you'll be able to hear a lot more about this when this episode comes out in the ten k collective save is very simple i'm not is basically well simply suit simplist version my understanding as a non loyal right is basically the most states have already agreed with llamas in the old widow marketplace's marielle gonna go directly to the marketplaces in this case amazon antitax directly from amazon so that's already happening in new york state apparently not is juicy come in in many of the big states like california in fact there's only a couple of the really big revenue e commerce states like florida but all complying with this and that likely just stop complaining that the next while so that may be breaking news some people said he was a revelation to me upset and a lot of most people's lives by usa sales tax said most uk by sellers nicely but not only in then there's been a lot of confusion about it that that property will continue to be a lot of discussion about it but my understanding from police it basically did vice is pretty simple which is you you know there were lots of legal complications and listen stay up saturday for the nobel prize lob fundamentally comes onto simple idea which he's done registry of sales tax idle as an individual settler danny two exceptions might be if you're doing a really big numbers off amazon which is to say if i businesses doing you know twenty thousand dollars april 'em maybe you know a few thousand dollars pay individual states probing not should not be registering as i understand now that is a a slightly slightly less concrete thing because i know kind of you all fundamentally in the frame for sales tax if you're selling direct to the consumer however there is a constitutional defenses i understand again i'm not a lawyer which is basically that it is unconstitutional to require eight as a business these things in excessively but in some way because i get the constitutional aim which is just to create create good in the state columbus and that apparently would get in the way this is an amazon says understanding in slash interview is understanding of a law so this is not the gospel they should not leave law is opinion let's lebanon opinion about you individual business so number one listen to other people who are experts but since area or at least they tend to be number two even doubt gillam pay a lawyer and get some advice because honestly if nothing else the mental clarity you need to get around this stuff is a really important now just come by jewel question crystal i don't even know what an e f is to be quite honest that cpsc is a an accountant in in u s a space 'em is presumed in ecommerce attorney i guess and then a consultant so you know it's it's not an easy area i if you do gets to pull ruffles and then he's a very very eggs but i may be the people that he kind of these aspects but but just bear in mind this is he was on tax strategy for microsoft general electric 'em and he's pretty serious about this stuff's i it does sound like me tasting situation what i would say is it's not a situation the plunge into just doing stuff out of panic overfeeding bullied by the states and it is a something to to calmly pieced together eight clear picture hey that is that much at least is very clear to me as a non acts but in sales tax on rushing to comply with laws which the changing by the month certainly much by the day is probably not the right approach that is well i think from from full i'm also gonna be interviewing people from who have absolute opposite opinion a only poke cost as well as does the tank to pockets not bad across the say this is primarily gates the needs of new aside as all people still considered getting into setting a any thoughts you than most of all content is give it to you but they swan came up guy makes me on the phone you know that's not separate it out but also it just it's a reminder collected pocus exists there's a good reason why they exist because if you don't have any life there's no particular reason to worry about sales tax yet but if you do have put a live oh you have revenue building a substantial then you need to deal with the issue so types and one of the ways to deal with it might be to investigate very very thoroughly and then not change anything but there's a big difference between not doing anything out of ignorance on choosing to do some nothing as the best course of action off the thorough investigation and in my opinion again and i'm no expert and there's but it's very clear that lost control of a see between some pretty clever people i think that full merits and detailed investigation i think it's a little bit different from other threats the business it exists like a break sit on the trump tariffs okay so talk about those first second just kind of relevant i think they're very similar in some ways each trump tower so they they import tariffs imposed largely directly by the president's bypassing congress because it's so invoking emergency laws and stuff and again look i'm not usa constitutional expert so then she me if that's not exactly right but anyway as in ecommerce that we care about the fact that they exist that will that that owned the goods right now let's not speculative right there's nothing speculative about what speculative is how long they'll be round full we don't know i will be repealed at epa would it be soon 'em will stick around will will they be repealed and then put back on that's more speculative but for the moment if you're in fourteen c u s then find a list of fun gets taxed which i believe we've we've done previously i'll put it in the show notes confined it and m disguise amazing coleman and see the puck costs that his car recent a news article we talked about that but you know find out if you just google it and then just make sure you check that out so that's very very different in sales tax because we sell stocks as a very big question mark as i understand it over the entire business of whether i it is legal unconstitutional have sales tax and be whether the data is even what's bothering 'cause the big gulp posted moving so quickly so this ready quite different i think it superficially similar i don't think it is i think sales tax is a question of tokenism good laws and and import tax it's just a question of check whether you put us if i didn't pay the money i think it's as simple as that at the moment but how long it will continue fooled that's another question i kinda possibly say and then said area brexit which is another one way so there's lots of buried their heads in the sand i mean that is more intrinsically uncertain because that you know dating ways lawyers which is bad enough you dealing with politicians his west i mean okay sales tax is politicized question okay and you all dating with politics i guess that's one much messy brexit almost pure politics and there's a lot of economic ramifications of it but it doesn't seem to be any rational arguments going on about it it's the people assume if idealistically believe in you are people idealistically opposed to it and the fact that it might be bad economics to to leave i he doesn't seem to be getting talked about too much but whatever the point is that the one you lost kind of decisions have you all sitting in the uk if you're in political when the china it shouldn't matter much difference 'em instances the lower import whatever and it's pretty unusual for the export for the uk to european union said the only place you could affect you is gonna be if you'll imported from china to the uk and then using your pay fulfilled the networks amazon's built to fulfill to germany in which case my suggestion to you right now is is get cracking is june now a go and get a company founded in germany every c e m company as i understand it this is broadly again i'm not a lawyer but my understanding is that most european union states will allow you to form a company and another european union state a with a lot more ease and somebody from outside the european union now if you do something in germany yeah that that company doors simplest uk company no and that's just life but it's gonna be a lot simpler i believe as a hedge against all the complications to form hey jim and company i say germany 'cause that's what most people have nice sales in europe but it could be from italy spain and import directed jimmy a half that pops open on top of the possibility of imposing into uk from china and then being blocked suddenly on october the thirty first grab a hard brexit said he festival october i believe twenty nineteen about somebody they send these october but do you have a hard brexit i eat as no deal with the european union and they raise 'em complete customs kind of know blockade but you know it's very impractical that's not a great eight space to be and if you're doing hundreds of thousands of dollars in sales in germany finance the process of yours on one of the members of my must monica fickle specifically with i mean i think you should be doing this my friend because if you're doing six hundred thousand pounds worth of sales pay you in germany and you basically imposing in the uk you'll you'll risking that now i'm not saying it wouldn't be a pain to change oil imports sort of supply chain into germany of course that would be a pain i'm not saying anyone should do that casually but i think opening a company e a as a hedge against over the next year and pay whatever legal fees maybe it's a few thousand pounds i think that's where he was the first series saturday and if you're a smaller southern econ a full about like hey i guess you gotta take it you'll you'll run lumps as they come in as they say so this is much broader by the way says nothing's do is one of the face but questions but this is a broader steam that comes up i think a from they question about sales tax is really the so three places we could get what he hits a by if you like government decisions government and the broader sense saying the customer sales taxes about the state's individual states all united states of america but it's not a federal level a thing the second by so getting hit very important usc's import taxes which is really driven and arguably driven by they executive i the president's move on hold us be federal mechanism congress doesn't seem to be involved i don't understand a constitutional less all stay out of that one and then it said the government could mess this up is a breakfast with the decisions of the uk government were although the complete loss of decisions as far as i conceive of all three is it's it's almost anniversary breaks it isn't it i mean that's just not a good thing to celebrate sticky by the will of the votes i should say and complete style night since i am i think he'd all these cases a it's a question of seeing things in the rights spirit so it is a very clear precise legally enforceable simple thing which import taxes are at the moment you just pay him if it's a complex thing why you don't know why that is going like break see you see obese possibilities that could go wrong and put a hedge in place against some and then so ending carry on with their life so that's a good question with breaks it where most people aren't doing anything and i think that's wrong i think you should do something nothing drastic to put some movies type things in place and then move on with their life and then sales tax in usa and interesting opposite case where a lot of people doing lots on getting stung some more and more and more filing and more and more fines and more and more liability and i see m b the series loyalty to be saying it it looks like you should do a lot but she shouldn't do anything and just let the state's go off the amazon one by one implementing they demand in the requirement on amazon to collect sales tax directly from amazon so very interesting times we're living 'em feels like a big big challenge feels like a big problem but actually guess well this is a result of success if you have a massively free trade for long enough that's gonna be reaction against it and i guess trump getting elected and brexit votes to sort of geopolitical signs of that's globally 'em but the dust is sort of a problem success because i think that globalized come essays hate just stay italy has as a general tendency loss couple of hundred years since the industrial revolution towards globalization i don't think that trend is gonna stop by think it might slow down but if you take a really long term view i think that's where it's going econ this is growing and it will slow down and possibly based on taxes and other things are waits on it but again the trend is very strong side they digitize ation of life if you like is another very strong trend is not as long as the trend towards globalization but it's it's gone twentyfive old is behind it audience that's been around for a while and and half of the globes just come online recently the fifty two percent of the global population so 'em quite big besides facebook facebook accounts and notice more potentially go amazon account so i think we gotta just play out the long haul if you have a massive spike in one direction you tend to have a reaction to the the way and then you've gotta take the long view i still think that e commerce is just growing and will continue to grow the trends are incredibly strong they slowed down by crises but they don't stop a date slice ation jim lisa being in a digital business and if you have a retail business itself generations old age you're taking online there's gotta be the right play longer time i just has to be because i see overwhelming trend look at high street and uk and then look at another thing is amazon i mean it's a big company is vulnerable i just i just i soon but it's gonna take a long time to get working and it's amazing that it's taken so long the sales tax the game host on amazon i mean it it it does being coming fit a generation rarely and and that's amazing it's taken so long it's it's gonna play out what is it mean it means there'll be more costs somewhere in the system but then everybody more less is gonna be the same boats so i don't think it's necessarily gonna disadvantage individual says against each other and and yeah maybe it will slow down e commerce has a whole okay joel maybe that's even overdue because it's being carrying size fall states will miss crazy 'em but i don't think we should rudy over panic about this maybe eighty comments gross studies from say fifteen percent when it doubles wherever you walk six years to ten percent year maybe it's maybe five years members doubles rice quickly maybe some sun gross in which case it doubles every seven years you still if you've got a business in times and now that's in a growing market and you keep market share and you keep the cash flowing is still gonna become very valuable time so we shouldn't lose track of these big of hatred which is to say relative to other opportunities intense of business and this other opportunities in terms of places to invest all cash this is still a good space the ban and relative to the problems that we could experience with import or x bull business jemele it could be a lot west you could be mocked suspense is with hundreds and hundreds of physical retail stores a cycle past one the other day in a i think it was mocked suspense this 'em so cooled flagship store in in oxford street which is one of the most famous shopping streets in the world setting in britain and it was empty in and shut down on companies casted the same thing so you know you see tough in ecommerce you should look across the way to a physical retail sales i realized you know well we gotta have some challenges there a comfortable lead they'll be able to stay calm assess each challenge in a proper amount of appropriate to the nature of the challenge the festival recognize the next challenge anthem yeah this this is she provides quite a a deep the conversation conversation 'cause it's one sided is me talking to you but it can become a conversation it becomes a face but great and and tell us what you need to know and also you'll full so i'm always interested to hear from listeners i genuinely love interactions we enough if you email me directly unless is a very specific thing i'm probably not gonna be able to respond to you not some carol don't work out he's just not left which then if i can't deal with that many emails when it's not you know servicing a client or response poke costs guess morty desktop with emails but it becomes a facebook group it may take me but it's time to respond but i will i will get in now reid everything in that and not necessarily immediately but within a week i would say cave name or if i'm a busy i will respond and there were other people in that sometimes some pretty vacations as well and bottle and again that busy people but i sometimes tighten up and respond as well so do yourself a favor that and let us know your thoughts especially around deep big question sales taxed chunk todd tariffs breaks it these these big questions that we have to deal with is in the right way a every different but they have some kind of similarities as sort of existential angst about funding elsie just sometimes feels like oh god i say at the end of businesses we know it maybe maybe santa businesses we know we need to buy the most sophisticated business model in some cases now stones and they also be it but they are passing so they also say that a hurricane or a typhoon to get yourself in jerick and shelter but recognize that it will blow past five days in the social judgments gonna make all the time and this is not easy stuff on whether she goes this is a hard cool to make but we gotta deal with this stuff and i think staying calm king suffer any wellinformed informed making really full full decisions not reactive say lead decisions than we are gonna be in the best shape we compete thanks so much for listening this is michael easy a if you wanna join the conversation go to the facebook group amazing f dot com for slash s b as as suffice be the t will be a book on if you wanna get more fallout from the experts on these deeply important questions and get yourself the ten k collective paul cost amazing at ebay dot com for slash ten k a ceo a ten k or if catch one you you are outlawing you log link ten k collective don't come directly that underneath the show notes on this city oh gosh sexually speech in the next you know hey that this is michael saying thank you for listening to these amazing sp eight episodes you just listen to just want to mention the events at the top of the show off system cost deep ten k collective e commerce poke costs which is four six seven and eight figure centers on amazon specifically that she would get show the people doing thinking numbers were still have a lot of things to learn from it and people these numbers show show but it's not gonna be immediately actionable fee you say if that is you keep this amazing sp april cost but if your six seven or eight figures on amazon or e commerce i really think you should check it out so i just want to give you a flavor of what's coming up in just listen no deeply excising is pocus guy but i just wanna say if you'll just checking it out no whether it's view of what sort of topics recover here's what's coming up sophist will interview with all right and ashley pace from the ten k collective most mind who is talking about his last year in income that's why he went from seven hundred fifty thousand dollars in twenty eighteen in ten of its you run rates this year of one point two five million dollars so that's from scratch in three free is 'em supers mama and you had the law the right skills going in and let's be clear about that but he didn't have tons of capital i'm just a convincing amount as so i still think that some incredible results and also he's a really nice kind of very three very clear minded and feet on the ground business thinkers so there's so much friday if nothing else check that out leading kind of as you enough i mean these guys of being in the mosque mind maybe she is now of just how that game to the degree of never heads quality discussions like i have now i know that said i 'cause it's about me it's not about me i'm just privileged to what some super small on great people so do check it out other things coming off that loss i love some industry expert interviews he's a flavor and honestly this is about half the list of people leave agreed to come on interview so these are already coated with ryan chef at from excuse my manufacturing we're gonna be talking about custom manufacturing in china and he's been out about eighteen years on custom manufacturing i can't emphasize enough how much is the future of you'll still just purely private living stuff it's gonna get harder and harder to make a profit without business model and i think he's got a year or two left in it but it seems like genius get those costs money to so this is they hide a critical skill sets they use should be learning i believe to future proof your business second at is funding which is another massive topic how to fund grace cause any a savings getting business has been honda says that gross sucks cash this is the law of gravity of scaling therefore we gotta look into raising capital on one way is debts and bruce mike a it'd being is gonna talk to us about butts i'm out at sullivan is coming on from systems cultural impact talk about outsourcing on company culture and again if you're skating up a business you gotta have a very painful time if you keep trying to do it yourself even if you say million dollars a year equivalent which i know some people have without sivy i guess what you're not gonna get humidity and without without the vip or basically protein on board say something that definitely a big buyers and chino so to put it on his head at something that will add to your comfort and enjoyment of you business if you go with it so that's a a few things we'd go in debt just in a bit more superficial detailed 'em cruise ship playing of previous with jason some of those could be talking about selling your business and they have a private equity tyco not from thee wall street cites so i really fascinating angle lots at bay reimbursements with ben chambers on amazon off in about fifty two hundred thousand dollars freddie series setting up some points in the year a how do you get your hands on massive just a fantastic so so cash a powerful thing also amazon's got your cash if you could get out to the system guess what bus fantastically healthy feel business mongers talking about quality control from china he's gotten incredibly detailed system for doing that he'd be not in china running i make so sing for nine years now so seriously knows his business backwards on sideways in in detail kind of given gonna talk about the quick outsourcing system free of represents and how to outsource quickly and easily pulling in my income on this morning we talk about pricing which is a very underrated and very important things but driving at profits will children's coming back on and we gotta talk about evaluating the competition from real sort of some point somebody's not just look at the numbers willie super smart with numbers but from the point of view of the overall competitive landscape ridi as ever wilson brilliant amazon and cowboys worth hearing kevin kings coming back on not even show we're gonna be talking about it with kevin on but you know he's always a super smart guy what it costs the marketing side so i'm sure we'll have lots to learn from him 'em what else we got coming up amazon account suspense she would just a price launching overseas markets with john can't pbc advertising a profit margins would like the guy of ppc authorize what else chris rolling just come back from judo loans presumed to be talking about loans ox alex oaks foot is coming owns took about sales tax he is super small at explaining this stuff in very simple terms but yet dealing with all the details while alex is absolutely critical passenger listen to if you sell in usa a costa's ns does see this is coming back to the short term funding broad must've coming back he used to run central say he's a super sharp guys well china's those with mental back fha loan is how this would pull ruffles and august is biggest is coming back on to talk about various different topics john combination to buy some stations pull hobbits took about shop balls brian justin's of bbc greg molested soak about pro research muddying ice to talk about germany on customer service in germany and probably you're gonna get my accountant penny low back to talk about bookkeeping basics who we have as you can tell an incredible amount of release prep school east for content coming up a lot of which is already recode it added definitely coming out of the next few weeks so get yourself over that folks it's just a place you need to be this is not just a bunch of let's fill the airwaves with the latest compact that's gonna die in two months i'm taking cats really focus on come ten days is evergreen as possible why because then you listen once an influence over multiple years or at least months and then you gotta pay off a over time so you get a better return on you're listening time if you like and i think that's a really important metric ton on listening at me something i give you in spades so get yourself over that ten k collective is the thing you need to look at fulton cake selective ecommerce pulled costa give it the full title you could look on i tunes i pay apple podcast apps or stitcher we should be on spotify spotify any minute now i'm just waiting to get us on google play uncouth poke costs so it will be more and more available if you can't find it and you'll listening device you prefer device then just go to the website and you can listen directly that ten k collective dot calling us ten k one is there a case of kito collectively c a l l e c t v e dot com us ten k collective dot com thanks so much for listening just such a very very lengthy post role pitch if you like she's selling and thinks it's not pitching any strict sense it's free and it will be of course we will mention paid services from time to time but i believe in giving like ninety five percent ninety nine percent body on that little pitch inside it's not be a pitch fast we all just aiming to build a massive goodwill and getting all sells out they were known and of course we have some wonderful people must minds and if people can use the services at some of the experts provide some better but

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