The United States has possibly the world’s most complex sales tax regime. This is due to each state setting its own sales tax rules, and states often take widely varying approaches. As a result, each state has a different tax framework, with varying rules around everything from tax liability and tax rates to exemption categories and reporting requirements. On top of this, some local area tax jurisdictions also have powers over some aspects of taxation and can set different rules for their city or county.

Companies outside the United States that sell into America most likely know sales tax obligations from experience with Europe’s value-added tax (VAT) or Canada’s Goods and Services Tax (GST) and Provincial Sales Tax (PST).

Wouldn’t it be amazing if your online business had to deal with just a single sales tax rate?

Selling outside the U.S. does not free you from the complexities of sales tax. Many countries enforce sales tax, presenting challenges for international sales. While it may resemble U.S. practices, nuances vary for international customers and purchases.