Reply To: Sweden Company; Do I need to pay sales tax to the US? Do I need Resale tax ID?
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Hello, Thanks for loving the blog’s content! I’m a Lawyer but I’m not a US Attorney but I’ll answer your questions from experience. You can try to contact a US attorney for legal advice. Okay that said, You do not need to pay sales taxes or income taxes in the US since you do not sell in the US market and your Company isn’t registered in the US. You’ll need to pay sale taxes in the EU once you reach a sale threshold of 10,000 Euros! When suppliers ask for your Tax ID, go ahead and give them your Sweden tax ID for your company! Some suppliers may ask that you fill and submit the IRS W8-Ben form. See what the form looks like on this link;
This is basically so they can report to the US that you are not a business registered in the US and claim treaty benefit and be excluded from paying 30% US income tax! This treaty benefits applies if your Country (Sweden has a double tax exemptions treaty with the US. Yes, Sweden has a double tax exemption treaty with the US!
You can see a list of countries that have a double tax exemption with the US here;
Let me know if you have any other questions