Question
Tree Bird Inc. an online retailer of birdhouses, gardening supplies and flower seeds is expanding international. Tree Bird currently operates in 25 states, and collect
Tree Bird Inc. an online retailer of birdhouses, gardening supplies and flower seeds is expanding international. Tree Bird currently operates in 25 states, and collect sales tax for state and local jurisdictions, they now are expanding into Japan, Australia, UK and Canada. The CFO recently got a letter from the province of British Columbia in Canada to show proof of PST and GST payment collections and remit the taxes quarterly to the government. The CFO needs your help assessing what indirect tax is due in what jurisdiction and what rate. Tree Bird never collect GST or PST in Canada and now owes a big amount of cash taxes to the BC Canadian government.
1.) What indirect tax issues do you see arising for small retailers such as Tree Bird as they expand internationally and selling their product overseas?
2.) What solutions could you advice both Tree Bird Inc. and other small retailers to help with collecting foreign taxes, in foreign currencies to international governments?
3.) How to you plan to help Tree Bird's CFO to monitor tax exposure?
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