New E-commerce Site - Tax Laws

Need information about international tax laws for e-commerce

[Nil austenite]

I am building a UK based e-commerce site and planning to sell internationally. I am a bit confused about the taxation laws. As I understand that if I am selling anything inside EU, I should add VAT. What about US, Canada and Australia? Do I also need to add any custom charges, if I am selling internationally? What about selling to other countries? (Like Asian or African Countries)

I am also looking for books, white papers, documents (on the net), which cover these issues about e-commerce like taxation laws, connecting shopping cart with merchant accounts etc.

Any help will be appreciated.

[Morgenhund]

Hello Nil_austenite,

here is a good place to start (.pdf document). Taxes are described there as well.

[europa.eu.int...]

For more info look accross the site: [dti.gov.uk...]

[Nil austenite]

Many thanx for your help. The links are really informative.

[chodges84]

btw, you can only add VAT if you are VAT registered. If you add VAT and someone asks for a VAT invoice and you can't provide them with one, they might grass you up to Mr Brown.

In which case your prices will be the same regardless of where you send it. Of course you could be VAT registed and know that already in which case the above won't apply to you.

[Rugles]

I can tell you that there is no applicable sales tax (or VAT like tax) for Canada and the US. But, there may be some duties when it arrives in North America but if you send them by postal service it is the responsibility of the purchaser to pay when the goods are delivered. Most of your packages will arrive without being inspected and duty being applied.
Hope that helps, good luck.

[aapbe]

I know it's very confusing, I'm confused over it for 4 years now. I've asked 2 different TAX offices in my area, and 3 different accountants, and they all have a different story!
I'm selling non tangible widgets and up to now, nobody has given me a definitive answer.

[Essex_boy]

See an accountant.

May seem expensive but in the long run youll save a fortune.

DONT do what I did and think you know it all, I ended up on the receiving end of a fine from Inland revenue.

Inland revenue, by the way, ARE very helpful, ask first act later.