Dropshipping UK and Australia & taxes! Help Please!

I'm not too sure if this is the right place to post this so sorry if it isn't.

I have 2 problems I'm hoping someone might be able to help me with.

1. tax issues
2. Shipping issues

Problem 1 - Tax Issues
I have an two on-line stores (one in the UK and one in Australia) which is to operate by drop shipping.

I am living in Australia so will be paying taxes in this country.

The site will have the following types of customers.

1. Customers in the UK buying gifts from the Australian site, for people living in Australia
2. Customers in Australia buying gifts from the UK site, for people living in the UK
3. Australians buying from the Australian site, for other Australians
4. British people buying from the UK site, for British people.

I've been told that I will only have to pay tax and collect GST in Australia. Do I still charge gst to UK residents buying from the Australian site? Am I VAT exempt in the UK? I'm soooo confused. :unsure::unsure::unsure::unsure:

Problem 2 - Shipping Issues
I intend to have a flat dropping rate for each site. E.g $15 for Australian gifts with next day delivery and something similar for the UK site.

Would it be best to incorporate this into the the product price and then offer free shipping?

Any suggestions welcomed!

Thanks
Christina

Just in case any one was wondering what I did with this and due to the lack of response i ended up doing the following;

1. Taxes ( I am charging everyone regardless of where they live the 10% GST)

2. I am offering free shipping within Australia and have included the cost of shipping in the product price. I have all so set the zone in the free shipper module to Australia so that only Australian shipping addresses can be selected at checkout.

1. Customers in the UK buying gifts from the Australian site, for people living in Australia
2. Customers in Australia buying gifts from the UK site, for people living in the UK
3. Australians buying from the Australian site, for other Australians
4. British people buying from the UK site, for British people.

I've been told that I will only have to pay tax and collect GST in Australia.

This Correct

Do I still charge gst to UK residents buying from the Australian site?

My understanding is if the goods are sent from Australia or any other country other than the UK then no they are GST exempt. You will set this up within zencart to look at the customers address or billing address. It will decide after you have set it up who is charged what, Nice Feature
If you are an Australian resident supplying out of the UK to UK residents then UK tax laws exsist.
Am I VAT exempt in the UK? I'm soooo confused. :unsure::unsure::unsure::unsure:

Problem 2 - Shipping Issues
I intend to have a flat dropping rate for each site. E.g $15 for Australian gifts with next day delivery and something similar for the UK site.

Would it be best to incorporate this into the the product price and then offer free shipping?

Yes but use either methods to sent freight free or with a module like the aus post module. Zencart will pickup on whether the customer is local or overseas. You can also use attributes to charge the extra overseas cost as well but in the long term keep it simple for you and the customer. We use the aus post module it is pretty good

Any suggestions welcomed!

Thanks
Christina[/QUOTE]

Cheers