Sales tax payment
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Hey there my name is Chris & I am in New Zealand
Please forgive me if this has been asked before
I understand how the sales tax is computed no problem
At checkout the sales tax is added & the customer pays relevant to their location
Question does this sales tax payment go directly ( automatically ) to the particular government & I don’t have to do anything & also
When physically posting the item & when it arrives in the country how do customs know that sales tax has already been paid ?
Apologies for being naive on this one & thanks in advance
Chris
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Hi, Chris @celticartnz!
No need to apologize here! Now to answer your questions:
does this sales tax payment go directly ( automatically ) to the particular government & I don’t have to do anything
No, the sales tax does not go directly to the government. Whatever the customer pays, including any taxes, gets transferred to you. It is then up to you to file any taxes you owe to your government as a result of doing business.
When physically posting the item & when it arrives in the country how do customs know that sales tax has already been paid ?
Normally, you’ll ship orders with an invoice that lists what’s been paid for by the customer, and sales tax will be on its own line item there. Do note that, when selling internationally, your customer will most likely still need to pay additional duties in the form of customs or import duties.
For more on this, it would be best to consult with a tax professional. However, I do hope I’ve given you some information to start with!
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