Sales tax tips for international sellers

Do sellers outside of the US need to collect sales taxes from their customers in the US?

We wrote a couple of blog posts on this exact topic that will help you better understand what you need to do for sales tax in the US:

1) Do international sellers have to deal with sales tax in the US?

2) International Amazon FBA sellers' guide to getting US sales tax compliant

In general, even though you may live outside the United States, if have established any other type of sales tax nexus in the US (such as an office, a satellite branch of your business, or a warehouse where you store inventory), then you must comply by the sales tax laws of the state where you have nexus by registering to collect sales taxes in that state.

If you are selling to customers in the US via drop shipping, this blog post may help you determine where you have nexus due to your drop shipping scenario, though we also suggest you consult with a CPA for a more detailed nexus assessment.

Once you've registered to collect sales taxes ( we tell you how to get registered here), TaxJar can compile detailed Sales Tax Reports with jurisdiction breakdowns for each U.S. state where you're collecting taxes.

You can either use your TaxJar state Reports to quickly and easily file your returns on your own, or you can enroll in AutoFile to have us file your returns in every state. (You must have a U.S. based bank in order to enroll in AutoFile.)

I’m not based in the US, can I still use AutoFile?

Yes, but there are a few things you will need first before you can sign up to use AutoFIle. To be able to enroll in AutoFile, you will need the following:

A Federal Employment Identification Number (FEIN)
A US based bank account

How do I get an FEIN number?

To get an FEIN number, you don’t need to be based or present in the US. There are a couple of ways to obtain an FEIN number:

You can apply yourself with the Internal Revenue Service (IRS). Non-US based businesses have to apply via mail or telephone. The IRS states that the processing time for this is around 4 weeks once they have received your application.
Alternatively, you can work with a service like Stripe Atlas or TaxMatrix to have them complete the process for you for a fee.

How do I open a US-based bank Account?

Once you obtain your Federal Employer Identification Number (FEIN), you may be able to apply for a US-based bank account using a digital banking platform, such as Mercury or Wise. Keep in mind that these platforms have specific eligibility criteria and requirements that you must meet.

After you have both a FEIN and a US-based bank account, you will be ready to enroll in AutoFile.