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Sales Tax Compliance for 3PL and Print-On-Demand: When Does Nexus Apply?

  • Storing inventory in a state (your own warehouse or a 3PL) creates physical nexus, requiring you to collect and remit sales tax there.
  • Economic nexus laws mean you may owe sales tax in states where you exceed certain sales or transaction thresholds, even without a physical presence.
  • Most print-on-demand platforms handle sales tax for you unless you already have nexus in a state.
  • Dropshippers must check both their own and their supplier’s nexus status to ensure proper tax compliance and documentation.
  • Track where your inventory is stored and where you make sales, register where required, and consider using a tax compliance partner to avoid penalties.

Source: salestaxsolutions.us

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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