Need some guidance in terms of VAT when starting an internet based retail store

[BenjaminSla]

Hello! I've been searching for information about this for some time now. A lot of the information i have found confuses me. I think this would be the best site to clarify things. Here is the situation:

- I'M starting a retail internet store.
- I will buy merchandise from theese locations: North Carolina, California and Latvia l
- I will ship my merchandise internationally.
- Orders are fulfilled by my supplier when a customer purchases trough my website.
- My supplier taxes me for 7.5% VAT in the US.
- I have always lived and been registered in Norway.
-I don't plan on formally registering my busniss anytime soon.

My question surrounding this is:
Will I have any VAT obligations in the US or EU? Do I have to worry about this sort of stuff early on when I'm in the starting phase, and don't have a formally registered business?

I think my supplier triggers a soft nexus, because they manufacture and ship my products, but I'm really uncertain as to how this affects me.

Any pointers in the right direction or straight up answers are GREATLY appreciated

-Benjamin

 

[LdiJ]

Hello! I've been searching for information about this for some time now. A lot of the information i have found confuses me. I think this would be the best site to clarify things. Here is the situation:

- I'M starting a retail internet store.
- I will buy merchandise from theese locations: North Carolina, California and Latvia l
- I will ship my merchandise internationally.
- Orders are fulfilled by my supplier when a customer purchases trough my website.
- My supplier taxes me for 7.5% VAT in the US.
- I have always lived and been registered in Norway.
-I don't plan on formally registering my busniss anytime soon.

My question surrounding this is:
Will I have any VAT obligations in the US or EU? Do I have to worry about this sort of stuff early on when I'm in the starting phase, and don't have a formally registered business?

I think my supplier triggers a soft nexus, because they manufacture and ship my products, but I'm really uncertain as to how this affects me.

Any pointers in the right direction or straight up answers are GREATLY appreciated

-Benjamin

In the US we do not have VAT. We have sales tax. Sales tax is paid only once, on the retail level. If your supplier is charging you sales tax, then your supplier is treating you as the retail customer. It would not be necessary for you to pay sales tax again.

I am not an expert on VAT in the EU, but what understanding I do have is that you would be subject to it there. You need a consult with a VAT expert in the EU.

 

[BenjaminSla]

Thanks a lot for the advice. I ready to launch my store and just need to figure out this last thing. I really appreciate it.