US sales tax nexus for foreign sellers — where does doing it myself start to cost money?
Some of it, yes — and we will say so on the call if that is the honest answer. The parts that are worth paying for are the ones where a missed election, a missed deadline or an unverified threshold costs more than the fee: each state sets its own economic thresholds, taxability rules and filing frequency, and physical presence such as inventory creates nexus independently.
What if I have already filed and got it wrong?
That is a common starting point. We re-derive the position, identify whether an amendment or a disclosure route is the right vehicle, and tell you which one preserves the relief that is still available. The order matters more than the speed.
How long will it take?
It depends on the documents rather than on us. Once the pack is complete most filings turn around inside a fortnight; anything that needs a certificate from a tax authority runs on that authority's timetable, which we tell you at the start rather than at the end.
Do I owe US sales tax if my company is not American?
You can. Sales tax is levied by the states, not by the federal government, and a state's power to tax your sales does not depend on you having a US entity, an office or a bank account there. Many states impose an obligation on economic activity alone, meaning sales made into the state. Others reach you through physical presence, and stock sitting in a warehouse is physical presence. Because each state decides for itself, the question is never whether you owe US sales tax. It is which states you owe it in, and that has to be tested state by state.
Does the tax treaty protect me from state sales tax?
No, and this is the most common misunderstanding on the subject. A treaty deals with income tax between two countries. Sales tax is a state-level tax on transactions, the states are not parties to the treaty, and a permanent establishment analysis says nothing about it. A business can be entirely protected from federal income tax by treaty and still carry registration and filing obligations in dozens of states. Keep the two analyses apart, because the conclusion in one tells you nothing useful about the other.
Does storing stock in a US warehouse create sales tax nexus?
Generally yes, in the state where the stock sits, and usually from the moment it arrives. Inventory is physical presence, and physical presence creates an obligation independently of any sales threshold, so a small volume of sales can still be enough. This catches sellers using third-party fulfilment, because goods are routinely moved between warehouses in different states without the seller choosing the destination or being told promptly. Ask your provider for the locations your stock has actually been held in, by period. That list, rather than your sales map, is where the review starts.
I am registered in one state, so does that cover the rest?
It does not. Each state runs its own registration, its own return, its own filing frequency and its own rules about what is taxable. Registering in one state gives you nothing in the next one, and it creates no presumption in your favour elsewhere. The practical effect is that the compliance burden grows with the number of states, not with revenue, so a seller with modest sales spread widely can have more filings than a larger one concentrated in a single state. Decide where you are obliged to register before you register anywhere.
Is software or a subscription taxable in the United States?
It depends on the state, and the answers genuinely conflict. Some states tax software delivered electronically, some tax it only when a physical copy changes hands, some tax a subscription as a service, and others do not tax services at all. The same product can therefore be taxable in one state and exempt in the one next to it. Do not settle this by asking what competitors do. It is decided per state, on how the product is delivered and described, and the description in your own contracts and invoices matters to the answer.
The marketplace collects the tax, so do I still have to file?
Often yes. Marketplace rules shift collection on platform sales to the platform, but they do not always remove your registration or your return, and they never touch sales you make directly. Several states still expect a registered seller to file and to report the marketplace sales, even though no tax is due on them. If you sell through a platform and through your own channel, you are running two positions in every state at once. Work out per state what the platform covers and what is left with you, and keep the reports that support it.
Branch or subsidiary — which should we use to expand?
A branch keeps one taxpayer: results consolidate at home, losses are usable sooner, and the exposure is that the branch is a permanent establishment whose profit the host country taxes, sometimes with a branch tax on repatriation. A subsidiary is a separate taxpayer with limited liability and local rates, at the cost of withholding on dividends home and transfer pricing on everything between them. The deciding facts are usually expected losses, liability and exit plans. See branch against subsidiary.
What is OECD Pillar One?
The part of the international agreement that reallocates a share of taxing rights over the very largest and most profitable groups to the jurisdictions where their customers and users are, regardless of physical presence — plus a simplified approach to routine marketing and distribution returns. It is aimed at the digitalised economy problem that physical-presence rules could not reach, and its implementation is still moving, which is why we read the current instrument rather than the original blueprint. See BEPS and Pillar Two.
