What is the taxation of international shipping?
The taxation of international shipping in Minnesota is largely determined by both federal and state law. On the federal level, business ships goods and services to foreign countries, and they are subject to taxes imposed by other countries as well as the United States. The federal government regulates international shipping through the U.S. Customs and Border Protection (CBP). In Minnesota, international shipping is subject to the same taxes as domestic shipping. These taxes include sales taxes, property taxes, and corporate income tax. However, the state does provide an exemption for certain international shipping services. These include services related to transporting goods between foreign countries and the US, certain international shipping services, and services related to the import of goods from abroad. In addition, Minnesota does not impose any additional taxes on international shipping services. However, some cities and counties in the state do impose local taxes on these services. Businesses should research any local taxes that may apply to their international shipping before engaging in any international trade activities. In summary, the taxes imposed on international shipping in Minnesota are largely determined by both federal and state law. Businesses should research any local taxes that may apply before engaging in any international trade activities.
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