Ask HN: How are you handling US sales tax?

2 points·feistypharit··1 comment

Hi, I'm looking to start selling a physical product in the US. However, it looks like being compliant with the US sales tax laws since the Wayfair verdict is a pain. Even using something like Amazon FBA doesn't help here. What are others doing?

Thanks!

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If you're just starting out, I'd register and collect sales tax in the state where you have a physical presence. You would only collect and remit sales tax in that state. As you grow your business, you may need to consider economic nexus thresholds to determine if you have nexus in additional states based on revenue or order volume [1].

You may have different sales tax obligations if you decide to sell on a marketplace such as Amazon. FBA sellers may have additional nexuses based on where Amazon is storing your products in fulfillment centers [2]. Marketplace facilitator laws are taking effect where the marketplace may collect and remit sales tax on your behalf in specific states, but you may still be obligated to report sales tax [3].

All of this can get complicated fast. As always, it's a good idea to talk to a CPA or tax professional first.

[1]: https://blog.taxjar.com/economic-nexus-laws/ [2]: https://blog.taxjar.com/find-amazon-fba-sales-tax-nexus/ [3]: https://blog.taxjar.com/sales-tax-by-state-marketplace-facil...

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