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Showing posts from January, 2019

Do International Sellers Registering for Sales Tax Need a U.S. EIN?

Are you a seller located outside of the United States that sells or plans to sell to U.S. customers? If so, you probably have many questions about the U.S. tax requirements that apply to international businesses. And if you are particularly concerned about how our sales tax laws apply to international (non-U.S.) businesses, then you’ve come to the right place! Helping international businesses understand U.S. sales tax is exactly what we try to do here at the “U.S. Sales Tax for Foreign Sellers” blog. You see, I know that international businesses,  especially international sellers , have many questions about doing business in the U.S. And so the topics that I write about are often based on issues that I am advising my own international clients on or on questions that I receive from international sellers (such as from sellers who post comments at my posts here at SalesTaxSupport). For instance, I often receive  many  questions from international Amazon FBA sellers. Because

International Sellers and U.S. Sales Tax Registration: 3 Key Issues

If you’ve made your way to this blog post, you’re probably an international seller that has begun to sell (or will soon be selling) to customers in the U.S. Or perhaps you’re an international seller that is wondering whether you’ll have to collect sales tax if you sell to U.S. customers. Or maybe you are using (or plan to use) a third party order fulfillment service, such as Amazon’s FBA service, to manage your inventory and fulfill your orders and you’re wondering what sales tax requirements this will create for your international business. Whatever the situation is – you’re an international seller that is concerned with U.S. sales tax and wants to know more about your potential sales tax obligations. So today I’ll be explaining the requirement to register for sales tax collection purposes and some important concepts that an international seller should be aware of. But before I launch into today’s post, it's important to quickly revisit my last  post  where I wrote about

U.S. Sales Tax for Amazon FBA International Sellers

Are you a foreign company selling on Amazon’s U.S. marketplace? Do you use Amazon’s Fulfillment by Amazon (“FBA”) service? If you answered “yes” to these questions – you will want to read this post! When I first started blogging about  U.S. Sales Tax for Foreign Sellers , I wrote a post about  tax treaties and U.S. sales tax nexus and explained what foreign sellers need to know . I thought that this would be an important topic because many foreign sellers believe that they don’t have to worry about state sales taxes if they are from a country that has a tax treaty with the United States. And sure enough, the comments, questions and requests for more information began to pour in which confirmed that this  was  an important topic! I also noticed that many of the comments and questions that I answered came from foreign sellers that use Amazon’s FBA service and that many of those sellers were surprised that using Amazon’s FBA service creates a requirement for them to collect

Comparing the U.S. Sales Tax to a VAT: Understanding the Key Differences

Foreign companies that sell to customers in the United States often find that the U.S. system of taxing the sale of goods and services is vastly different from the taxing system of their country. This is especially the situation if the foreign seller is from a country that imposes Value Added Tax (VAT). Although there are  some  similarities between the U.S. sales tax and a VAT system, there are  many  differences. For foreign sellers that are just beginning to sell into the U.S. market, there is much to know. In addition to understanding how U.S. sales taxes are applied, foreign sellers need to be aware of their responsibilities as “tax collection agents”, that a uniform tax rate does not apply across the entire the United States, or that sellers can be subject to severe penalties for not fulfilling their responsibilities. Yes, there is a lot to know! So in this post, I’ll provide an overview of a few key concepts of the U.S. sales tax system and highlight how the sales t

Tax Treaties and U.S. Sales Tax Nexus: What Foreign Sellers Need to Know

How the U.S. sales tax rules apply to foreign (non-U.S.) companies that sell to customers in the United States can be complex and confusing! For some foreign sellers, the U.S. transaction based sales tax is very different from the consumption based model followed in many countries.  Additionally, some foreign sellers may not realize that 45 of the 50 U.S. states, and the District of Columbia, impose their own state sales tax. Foreign sellers may also be surprised to find out that the definitions, rules and rates are not the same in all of the states or that many local governments, such as the individual cities within the states, can also impose a sales tax. But for many foreign sellers – in particular those that are familiar with international tax concepts and U.S. federal tax treaty protection – it may come as an even bigger surprise to discover that in general, the  U.S. states do not recognize tax treaties  that have been entered into between the United States and a foreig