- Liability for U.S. sales tax begins when a U.K. business exceeds a state’s economic nexus threshold, not when the business realizes it.
- Uncollected sales tax is still owed and may have to be paid out of the business’s own margin, with possible interest and penalties.
- Late registration does not erase past tax exposure; voluntary disclosure agreements may help but depend on timing.
- U.K. businesses often miss registration due to misunderstanding U.S. state-level rules and thresholds, which differ from VAT.
- Remediation requires a structured approach, including a formal nexus review and state-by-state exposure calculation.
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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