- Compliance with US Sales Tax regulations is complex and time-consuming for foreign companies due to around 11,000 tax jurisdictions
- Foreign companies must register in each state and possibly in local jurisdictions, determine the taxability of their products, and the applicable tax rate
- Sales Tax systems in US states are complex with different tax rates and registration thresholds
- Local jurisdictions often have their own Sales Tax regulations, making compliance difficult for foreign entrepreneurs
- Taxation of electronic services varies between states, with some treating them as goods and others as services
- Sales Tax registration is required when there is a physical or economic nexus in a state
- Voluntary disclosure programs provide support to companies to comply with Sales Tax laws without facing high penalties.
Source: datenbank.nwb.de
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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