We have a VAT registered UK company and have been drop shipping within the UK for a couple of years.
We are about to start drop shipping in the USA. We will be advertising items on ebay.com (USA) and when a customer purchases an item, the item will be shipped directly from a USA supplier to the USA customer.
What would be our tax liabilities on this kind of setup? Would we have to pay any US tax, either on income/profit or on product sales (e.g US equivalent of VAT) or would we just pay UK tax on profits and not add VAT on those sales?
Thank you :)