What is the taxation of international shipping?
International shipping is subject to taxation depending on the jurisdiction of the country in which the goods are delivered, including Alaska. The taxation of international shipping follows the principle of territoriality which states that the goods must be taxed in the country in which they are received, regardless of the country of origin. In Alaska, international shipping is subject to a variety of taxes, including sales tax, property tax, and corporate/business income tax. Sales tax applies to items delivered into Alaska, including tangible goods and services. Property tax applies to tangible goods that have been stored in Alaska. Corporate/business income tax applies to businesses that are based in Alaska and ship items to other countries. Ultimately, international shipping taxes are the responsibility of the purchaser. The purchaser must ensure that taxes have been paid in the country of destination prior to shipment. It is important to note that different countries have different regulations and procedures when it comes to taxing international shipping. Therefore, it is important to understand the country’s laws prior to payment. Furthermore, companies that ship items to foreign destinations should consult with a qualified tax attorney to ensure that they are meeting all of their obligations.
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