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My business is in Canada. I sell goods online that I ship by mail. I would like to use a fulfilment center in the UK to lower the cost of shopping for my european sales. Do I become liable for local sales tax in the UK, considering that I now warehouse goods locally?

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I can't answer your question, because I'm in the US. But something else you may need to consider is how your income will be taxed if you have a presence in two countries. If you haven't already, I suggest you also get an answer to that before moving forward. Some countries have agreements with each other that limit this tax liability. – Zuly Gonzalez♦ Jan 1 '12 at 16:38
Yeah, having a place to store goods is not considered a permanent establishment for purposes of income tax (according to tax treaties). However, I could find nothing about sales tax. – Alexandre H. Tremblay Jan 1 '12 at 18:32

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Do I become liable for local sales tax in the UK, considering that I now warehouse goods locally?

Wrong querstion. If you import to the UK to a certain degree, you are always liable for sales tax - OR your customers are liable for import dues of pretty much the same amount but with a TON of additional paperwork attached.

SO, practically, you should be happy about that. Makes it easier for the customer to receive the goods when they come from within the EU.

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If you are talking about "Sales Tax" aka VAT there is a lot of info with regards to it on this website. From what I am reading you may have to register for VAT collection but if your sales are below a certain amount you may do this voluntarily.

I think this one is the most on-point

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Typically you pay 'local' taxes where the company is domiciled. Most major trading countries have double taxation laws in place so you only pay taxes where your company is legally located. This it what it looks like from my end ~ http://www.hmrc.gov.uk/cnr/app_dtt.htm

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