top of page
Search

If you export to the US, you MUST charge sales tax!


While suppliers located outside the country of delivery don't typically charge VAT or GST, in the US, all retail sales of tangible personal property and some services must now include sales tax if they exceed $100,000 per year or 200 transactions. Unlike VAT, sales tax in the US is not recoverable and is a cost.


The Supreme Court of the US ruled in 2018 that states can require out-of-state sellers to collect sales tax on sales made to customers in their state, even if the seller does not have a physical presence in that state. As a result, many states have implemented "economic nexus" laws that require remote sellers, including foreign vendors, to collect and remit sales tax if they meet certain thresholds for sales or transactions in the state. These thresholds vary by state but generally range from $100,000 in sales or 200 transactions per year, although not all states have adopted economic nexus laws.


International sellers must collect and remit the tax to the tax authorities. Failure to comply with sales tax laws can result in penalties, such as liens, seized inventories, and legal action in their country of origin's court system.

 
 
 

Comments


bottom of page