- International Amazon FBA sellers must determine which US states create sales tax nexus for them, most commonly by storing inventory in Amazon fulfillment centers.
- Nexus can also arise from physical presence, employees/contractors, economic activity, affiliates, drop shipping, trade shows, or Amazon Flex deliveries.
- Even if nexus exists, sellers should consider whether sales in that state are material enough to justify registering and collecting tax.
- US tax treaties do not exempt sellers from state sales tax or possibly state income tax; federal treaties do not apply to individual states.
- Because the rules are complex, the guide recommends consulting a US sales tax professional.
Source: taxjar.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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