What is an international seller's US sales tax obligation?

International location provides no exemption from US sales tax. Foreign sellers who meet US economic nexus thresholds or have US inventory must collect and remit just like domestic sellers.

Key takeaways

• Economic nexus applies globally: the $100,000 / 200-transaction standard applies to all sellers shipping into a US state, regardless of where the seller is headquartered
• Physical nexus applies globally: international sellers using US fulfillment centers (Amazon FBA, 3PLs) create nexus in the states where that inventory is stored
• No treaty protection: US tax treaties with foreign countries generally cover income tax, not state sales tax, international sellers get no treaty-based exemption from US state sales tax obligations
• Marketplace sellers: if an international seller sells through Amazon, Etsy, Walmart, or similar US marketplaces, those platforms collect and remit state sales tax on qualifying sales: this significantly reduces (but doesn’t eliminate) the seller’s direct sales tax exposure
• Direct-to-consumer international sellers: brands selling directly to US consumers via their own website must collect and remit US state sales tax once nexus thresholds are met, same as a US domestic seller
• Registration process: international sellers register with US states the same way domestic sellers do; states don’t have separate registration processes for foreign entities, though some may require a US address or registered agent for mailing
• Most common gap: international brands that grow their US DTC channel without monitoring economic nexus thresholds; the same $100,000 triggers that catch US sellers catch international ones