Sales and Use Tax Guide for Businesses with Customers in the US

• This is a guide to sales and use tax for businesses with customers in the US. There is no VAT or GST system in the US, instead sales tax is imposed on the sale of goods and some specified services.
• Each state has its own taxing authority, with 45 states plus the District of Columbia and Puerto Rico currently having sales and use taxes in place.
• Local jurisdictions such as counties, cities, and special districts may also have additional sales and use taxes.
• There are over 11,000 sales tax jurisdictions in the US, making it a complex task for businesses operating in multiple states.
• The term “nexus” is crucial for determining a business’s connection with a particular jurisdiction and whether they are required to register, collect, and remit sales tax in that jurisdiction.
• Physical nexus is established when a business has a physical presence in a state, while economic nexus is established when a business has a significant economic presence in a state.

Source Fonoa

See also

• VAT Country guides of the European Union Countries

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