What is the taxation of international shipping?
In Tennessee, the taxation of international shipping is generally the same as the taxation of domestic shipping. This means that you must pay taxes on the goods you are shipping to customers in Tennessee. Depending on the type of goods you are shipping, you may be required to pay sales tax or excise tax. Sales tax is a type of consumption tax which is levied on goods sold in the state of Tennessee. All taxable goods must be registered with the Tennessee Department of Revenue first in order to get a sales tax license. International shipping is subject to the same sales tax rates as domestic shipping within the state. Excise tax is a type of tax imposed on goods that are consumed in the state of Tennessee such as alcohol, cigarettes, and gasoline. International shipments that include these goods must pay excise taxes in Tennessee. The amount of tax you need to pay depends on the value of the goods you are shipping, and specific rates vary for different types of goods. When shipping to customers in Tennessee, make sure to pay the required taxes. In some cases, you may also be required to provide invoices or documents to prove that you paid the taxes. Failing to pay taxes on international shipments could result in serious financial penalties.
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