Taxation Drop shipping

[DylanGleebold]

I just started drop shipping and it's going quite well. ( $400+ profit first week ). I am in high-school so I don't know when to start paying tax. What about business tax?

Thanks for any replies

 

[Heiko]

That depends on where you live and how old you are.

3 Questions:

1 Where do you live? (country)
2 How old are you?
3 Do you have a business registered?

 

[DylanGleebold]

That depends on where you live and how old you are.

3 Questions:

1 Where do you live? (country)
2 How old are you?
3 Do you have a business registered?

1. England ( currently ). Slovakia ( permanent residency/passport )
2. 17
3. None whatsoever

Also, can I pay tax where my permanent residency is?

 

[Heiko]

I believe that you have to register your business in the country that you are registered in, the problem with dropshipping is always the taxation. There is a lot of confusing advice going around here and on the internet saying that you don't have the pay any VAT because your products come out of a different country etc. I think your best bet is to consult a tax assistant and ask him about this stuff. If you keep on earning 400 per week, i suppose you know what you are doing and then i also suppose that you earnings will increase and thats when you have to register a business or the Tax Managers will come after you with a high fine, and trust me.. you dont wanna deal with that crap.

Also again, any advice that you see on the internet. Take it with a grain of salt, because what might apply to some people might not apply to your situation.

 

[DylanGleebold]

I believe that you have to register your business in the country that you are registered in, the problem with dropshipping is always the taxation. There is a lot of confusing advice going around here and on the internet saying that you don't have the pay any VAT because your products come out of a different country etc. I think your best bet is to consult a tax assistant and ask him about this stuff. If you keep on earning 400 per week, i suppose you know what you are doing and then i also suppose that you earnings will increase and thats when you have to register a business or the Tax Managers will come after you with a high fine, and trust me.. you dont wanna deal with that crap.

Also again, any advice that you see on the internet. Take it with a grain of salt, because what might apply to some people might not apply to your situation.

Thanks for the replies!
Well currently I am not paying any VAT as the value of the products is below 20$ ( at least declared ). Is VAT based on the value is sell it? I am more worried about personal/business tax.

 

[LordOfCarrots]

Thanks for the replies!
Well currently I am not paying any VAT as the value of the products is below 20$ ( at least declared ). Is VAT based on the value is sell it? I am more worried about personal/business tax.

at 400$ a week dont worry no one will come after you unless you are being reported by one of your jealous relatives or 'friend'.
If you think you can grow bigger and expand, do exactly what Heiko said!
For the VAT i think its even on a 1$ value is applied, so technically you should report to the government thief if you are earning money... (i dont know about UK or $, i made and make my money in BTC or monero )

 

[DylanGleebold]

at 400$ a week dont worry no one will come after you unless you are being reported by one of your jealous relatives or 'friend'.
If you think you can grow bigger and expand, do exactly what Heiko said!
For the VAT i think its even on a 1$ value is applied, so technically you should report to the government thief if you are earning money... (i dont know about UK or $, i made and make my money in BTC or monero )

At what point should I go and sign the business and do the tax declaration?

 

[LordOfCarrots]

At what point should I go and sign the business and do the tax declaration?

Its your first week right?
wait a month or two, try different twists, if they catch up and you start earning more (even 400$ peer week isnt that big but i think at 17years old its worth to make it legal).
Do 400 peer week for 1 month, use 800$ for a good adviser and a tax assistant and all the paperwork to be right and legal. (i know its 50% of your earning but you get what you pay for..)

 

[kweiss]

I am in Germany so I am in the EU. I have seen people run drop shipping without registering a business or paying taxes. I am not recommending you to do this but I have a practical question which is how would the authorities know you have a business or are not paying taxes if you yourself do not report anything?

 

[Tenebra23]

Agree that if you keep earning that amount, you may consider talking to a tax assistant. Here in Italy, for example, you can't run a business even if you earn €10 a month with it (yeah, shitty Country for the financial side). Even if they tax you, you should remain with a nice NET, looking at your current's earnings. Good luck!

 

[joe740217]

I am curious about what is the promoting strategies you use to get profit from dropshipping business.

Can you reveal some information?

 

[Naroha]

I am in Germany so I am in the EU. I have seen people run drop shipping without registering a business or paying taxes. I am not recommending you to do this but I have a practical question which is how would the authorities know you have a business or are not paying taxes if you yourself do not report anything?

your bank will simply inform them if you dont do it...

 

[Zwielicht]

Thread Moved​

 

[nextlvlig]

As for a US resident, when should I start paying business taxes?

 

[DylanGleebold]

I am curious about what is the promoting strategies you use to get profit from dropshipping business.

Can you reveal some information?

Sure. I use Instagram Influencers. Tip I found is to promote on pages that aren't too obvious. Let me explain: I sell clothes with Japanese prints so the first thing that would come to mind is someting like a japanese page or anime page but I find that these pages often have 'bad' follower or rather promote often so in my case I look at the prints and see one of them has like a koi fish so i find a koi instagram page with little followers aka microinfluencers.

 

[Dereshi]

Hi,
Basically, you have many possibilitieS. You're young, so you don't know how the system is working. Just spend a little bit a money for a tax consultation and you'll see what you can do (VAT/No VAT, country of business setting up etc...). Be careful , and good luck mate, it's so good that you start at this age!

 

[Erald]

Try this first month if things start to grow even more , I suggest you to go and register the business

 

[whitecupg]

I am in Germany so I am in the EU. I have seen people run drop shipping without registering a business or paying taxes. I am not recommending you to do this but I have a practical question which is how would the authorities know you have a business or are not paying taxes if you yourself do not report anything?

400$ weekly is nothing but if you start earning alot you bank will find suspicious and they will possibly share information with the tax office.


@OP
400$ profit weekly, as some users already said , you don't have to do anything. If you start making thousands of profit then it's best to register a company obviously

 

[German Rodriguez]

Congratulations $400 on the first week

 

[agronomi]

how much does dropshipping make?
all people are loosing and you say $400 is nothing?