- 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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