The U.S. sales tax has always been the focus of media attention. The U.S. Supreme Court passed a law giving states the right to impose excise taxes on interstate e-commerce sales. Passage of the bill would require all sellers of goods sold in the United States to pay sales tax. But the good news is that the states basically do not pursue the sales tax that cross-border e-commerce sellers have not paid in the past few years! The main reason is because if it is retroactively applied, a very complicated double taxation will occur. The problem is not only for the state government To trace sales tax to e-commerce sellers is also necessary to trace use tax to some buyers. This is a huge hassle for the state tax department because they have so many people to track and they can’t find them.
First we need to determine if we need to pay sales tax:
Sellers shipping directly from China to the United States: If you ship from this country, then you don’t need to pay sales tax in each state, you only need to pay import tax. Since direct mail sellers generally use logistics companies, any import taxes incurred on product delivery must be paid by the recipient upon delivery.
Because USPS, UPS, FedEx and Deutsche Post DHL all have their own customs services and manage the import of their products. If our sellers use these 4 logistics companies, they will deal with tax issues directly with the consignee, so the seller does not have to worry about tax issues. If your goods are not handled by these four logistics companies, you should contact your logistics company to ensure that they handle customs clearance for you. But this has nothing to do with sales tax, it’s just a standard procedure for shipping products to the United States.
Sellers using U.S. warehouses and selling products in the U.S.: All sellers who have their own warehouses and sell products in the U.S. are subject to domestic sales tax. Of course, this also includes being a seller of Amazon FBA products. The Supreme Court did not set a minimum threshold or any specific direction for the collection of sales tax. But the breach took advantage of South Dakota law, which requires sellers with annual income of $100,000 or more than 200 transactions to collect sales tax from local residents. So, if you don’t meet the trading volume requirements, don’t worry about taxes!