How do I correctly set up taxes for dropshipping in the US from Germany?

Accounting & Taxes

Topic summary

Germany-based seller seeks guidance on setting up U.S. sales tax for dropshipping.

  • Core principle: U.S. sales tax is state-based and triggered by “nexus.” Nexus can be physical (warehouse, office, employees) or economic (state-specific order/revenue thresholds).

  • If you have nexus in a state (e.g., New York or California), you generally must register there and collect sales tax on orders shipped to customers in that state.

  • Early-stage scenario: With no U.S. physical presence and products sourced from outside the U.S., you likely do not need to register or collect sales tax initially. This may change if you hit economic nexus thresholds.

  • Recommended actions: Track sales by state to monitor potential economic nexus; consult a U.S. tax professional to confirm obligations; review the linked Help Center resource for detailed rules and Shopify-specific implementation.

  • Status: Guidance provided, but no definitive resolution. Compliance depends on actual nexus; key next steps are monitoring thresholds and seeking professional advice.

Summarized with AI on February 19. AI used: gpt-5.
1

I live in Germany but want to dropship in the us and the rest of the world. How do i set up taxes right?

2

Hi @Niklas13 ,

Thank you for getting in touch. I’ll be happy to offer some general advice about US-based taxes below.

Sales tax in the United States is generally dependent on tax nexuses, and whether or not your business has one. If you are deemed to have a tax nexus in, say, New York and California, then you’d likely need to register for sales tax in those states and charge sales taxes on orders made to customers in those states. A tax nexus can be physical—such as having a warehouse, office, or employees in the state—or economic, which is based on factors such as how many orders you are receiving from a state or how much revenue you are receiving from customers within the state.

If you are just starting out and have no physical presence in the United States, and if your products are sourced from outside the US, then you likely won’t need to register for sales tax and charge taxes on your orders for now. However, please bear in mind that while this is the general rule, you’d be best served speaking with a tax professional if you are unsure of your obligations.

There is also more information on sales tax in the United States over on our Help Center, which I’d encourage you to read. This explains in more detail what tax nexuses are, and how your tax liabilities are determined within Shopify.

I hope this helps but please let me know if you have more questions.