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When Does U.S. Sales Tax Become Mandatory for U.K. Businesses Expanding to America?

  • U.S. sales tax becomes mandatory for UK businesses once certain state-specific thresholds (nexus) are met, such as economic activity, inventory in U.S. warehouses, or marketplace sales.
  • U.S. sales tax and import duties are separate; most goods now face duties due to the end of the de minimis exemption, impacting pricing and margins.
  • Compliance is complex and varies by state, requiring registration, tax calculation, filing, and remittance once triggered.
  • Scalable U.S. growth requires robust compliance systems, real-time tax integration, and pricing adjustments for tariffs.
  • Expanding to the U.S. offers UK businesses access to a large, high-spending market, revenue diversification, and increased brand value.

Source: avalara.com

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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