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Question
Do I have to pay taxes to IRS if I buy things from company in the Middle East ?

Does the company in the Middle East have to pay taxes to the IRS ?


Thank you.

Answer
Hello Jack,

If you buy products for personal use from the foreign company you don't have to pay tax on purchases. Neither the foreign company must pay tax to IRS for export of goods (although they may have tariff payments, which is the foreign trade issue, not the IRS).

However, if you have business relations with the foreign company  - i.e. that company is your foreign affiliate or you are the affiliate of the foreign company, then these transactions are subject to reporting to the IRS on both sides.

I.J.Zemelman, EA  

Tax Law (Questions About Taxes)

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IJ Zemelman, EA MBA

Expertise

I am an IRS-authorized EA and principal of a Tax Preparation firm focusing on U.S. Expatriates. We specialize in all tax issues faced by American citizens living abroad - such as foreign earned income, tax treaties, foreign spouse, etc. Visit our website - www.TaxesForExpats.com - for more information.

Experience

18 years professional tax experience, 12 with expatriate taxes.

Publications
Expatriate tax information on www.TaxesForExpats.com

Education/Credentials
MBA from Zicklin School Of Business, IRS Enrolled Agent

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