ECommerce platform tax to pay

ECommerce platform tax to pay

Hello,
I am based in London and I plan to open an eCommerce Platform by doing drop shipping with Chinese suppliers. However, I am quite confused regarding the taxes I may encounter. I read online that I have to give the TVA amount to the government and also pay an income tax. I am not sure about what I read. Therefore I would like to have more precision and and know what I have to do to make my payments to the government if have to. Should I register somewhere?

My second question is that if it happens that I leave the UK and continue to run my eCommerce platform abroad by using my UK account to make the business transactions,. will I still have to pay taxes to the UK government.

NB: I am not a British Citizen

Asked 5 years ago in Income Tax

Hi,

- If you are based in London and would like to do drop shipping business then UK laws will be applicable and not Indian laws. Please consult CPA in London for indirect taxes and constitution of business.

- In respect to Indian income tax, it depends on residential status of an individual irrespective of citizenship. If you will be resident in India then your global income would be taxable. It would include your personal income and not business income unless business constitution is individual.

Vivek Kumar Arora

CA, Delhi

5016 Answers

1141 Consultations

Talk to Vivek Kumar Arora

We deal in Indian taxation system and global taxability or India residents.

You should consult a CPA for your query.

Sorry for the inconveniences.

Let us know if you need any assistance with regards to Indian taxation.

Lakshita Bhandari

CA, Mumbai

5687 Answers

943 Consultations

Talk to Lakshita Bhandari

Dear Sir,

Hope you are doing well !!

It is advisable to consult with CPA for the same.

Payal Chhajed

CA, Mumbai

5189 Answers

303 Consultations

Talk to Payal Chhajed

Hello,

We work in Indian Taxation Laws. If you are dropshipping from China to the UK, then UK VAT Law will be applicable on the same and not any Indian Law. You should consult a CPA in the UK for the same.

As per Indian Income Tax, if you are a resident of India then your global income is taxable in India. So if you are considered a resident in India(as per residential status section of Income Tax) then your income from this dropshipping business would be taxable in India.

I hope that this answer satisfies your requirements.

Regards,

CA Hunny Badlani