Selling Into the U.S. – Understanding How Customer Location Impacts Which Sales Tax Rates and Rules You Apply

The United States has possibly the world’s most complex sales tax regime. This is because each state sets its own sales tax rules, and states often take widely varying approaches. As a result, each state has a different tax framework, with varying rules around everything from tax liability and tax rates to exemption categories and reporting requirements. On top of this, some local area tax jurisdictions also have powers over some aspects of taxation and can set different rules for their area.

Given the wide variety of rules and the rapid rate of change, every business selling into the US faces several practical compliance challenges. Here are a few to consider when looking at building your US sales tax approach.

Source: taxconnex.com

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