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USA Sales Tax Information

If you are a foreign/cross-border business selling or planning to sell goods or services in United States, you may be required to register for Sales Tax with the US Internal Revenue Services.

You can always review the latest US Sales Tax regulations on the Internal Revenue Services Website.

US Sales Tax Information

Sales Tax was first introduced in West Virginia in 1921 and has since been introduced to 45 states in the US. US is one of very few countries in the world that still applies a final sales tax instead of Value Added Tax.

 

For foreign businesses selling into the United States, there is a set of complicated Federal and Local State set of Sales Tax obligations to consider. There are a variety of factors involved that may levy taxes at different rates on a range of transactions, making US tax compliance one of the most complex in the world.

The 50 states in the US can charge tax on sales to businesses with local establishments in the state, typically premises or employees.

 

Having significant ties to a state can also be seen as a local establishment, this could be things like sales through an agent. 

For sellers providing taxable supply in a single state, sales tax is fairly straight forwards.

 

However, businesses trading across multiple states face a complex question over the apportionment of taxable income. currently, there is no agreed method, making this sales tax division challenging. 

In addition, it is not uncommon for individual states to request a full report of income within the state as well as in other states and worldwide.

 

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TIRED OF AUTOMATIC RESPONSE? 

At Safari Star we want to see our clients and partners grow and achieve their true potential. In today's world time is money and efficiency automation is very important.

However, we also know that every business is different and therefore what might be right for one business may not necessarily be the best approach for another.

We have invested our time in building a strong team of VAT experts so that when it comes to VAT compliance, we can help you save time and money by helping you make the most efficient decisions for your business needs.

If you would like to have VAT consultation with a real person, contact us.

When Should You Register?

If you are a foreign/cross-border company providing taxable supplies in the US, you may be required to register for Sales Tax and comply with all associated laws in each state that you trade in. 

Whats the difference between VAT and Sales Tax?

Sales tax is collected only at the time of the final sale, whereas VAT is applied every time value is added at each stage during the supply chain.
Depending on the state in which your customer is based, different items may be taxed at different rates.

As you can see, the US sales tax can be very complicate and will be different depending on how and where within the US you are trading. If you would like to discuss your business activities in the US and where you should register and report sales tax, please contact us.

US Sales Tax is a consumption tax charged on the sale of goods to the end consumer. In most cases, the seller is held responsible for the calculation, collection and settlement of tax obligations to the local state.

Each state sets and operates its own sales tax law, which creates complicated procedures for things like taxable goods, invoicing, tax returns, reporting periods, and so on.

As each state charges sales tax based on the state rules, the sales tax rate varies from state to state and can be from 0% to 12%. 

Are you looking for a VAT expert?

Safari Star can help you grow and expand your e-commerce business into new markets.