How do I handle taxes for international shipping from Canada?

Accounting & Taxes

Topic summary

A Canadian entrepreneur using Printful to sell art prints is navigating US sales tax requirements for international shipping. The main concern centers on whether registration is required in every US state before making sales.

Key clarifications provided:

  • Most states require reaching economic nexus thresholds (typically $100k in sales or 100+ transactions) before registration and tax collection become mandatory
  • Thresholds and rates vary by state, county, city, and special jurisdictions
  • Registration occurs state-by-state once nexus is reached, with filing frequency (monthly/quarterly/annually) determined during registration
  • Shopify offers tax calculation tools and reporting to help track when nexus thresholds are approaching

Physical presence complication:
A follow-up question raised an important distinction: storing products in US warehouses may create immediate physical nexus, potentially requiring registration regardless of sales volume—unlike economic nexus which has thresholds.

Resolution status:
The original poster decided to begin selling to the US immediately, planning to register only after reaching nexus thresholds. However, the physical presence question remains partially unresolved, with recommendations to research specific state requirements.

Summarized with AI on October 27. AI used: claude-sonnet-4-5-20250929.
1

Hi everyone,

I’m just starting my new business with Printful (selling art prints) and I’m a little bit overwhelmed with all the taxes stuff. I’m located in Canada (Qc) and I was planning to sell internationally until I saw all the legal stuff about taxes. Let’s focus on the US: I have no residency there, I saw that depending on which state, you charge taxes only if you have a Nexus there (physically or economically), that I get, and I saw that Shopify even calculates when you reach that economic nexus for you to know when it’s time to charge taxes in a certain state.. MY QUESTION IS: Do you have to register in EVERY SINGLE STATE that you sell when you’re ready to charge taxes?? Some states have no nexus and charge taxes at the 1rst sale, so I WOULD NEED TO GET A LICENCE/REGISTER BEFORE SELLING? This is a lot and very complicated if it is that way. Can someone help me, tell me their own experience with shipping international bc I’m freaking out !

Thank you !

2

My experience is that you reach Nexus before needing to register. Usually that means reaching over 100k in sales or exceeding 100 transactions. It does vary by state. You do register in each state and the rate for collection varies not only by state but by local jurisdictions. Rates vary by state, county, city and special jurisdictions and sometimes on shipping as well. It can be extremely frustrating. Shopify does have tax rate services and reporting that is helpful but lacking. Once you reach nexus and begin collecting, you register in that state and you will learn during registration if you are required to file monthly quarterly, or annually. Failure to file leads to stiff penalties and failure to pay on time brings penalties and interest.
Feel free to contact me if you’d like to be in contact with services that can help with filing.

1 Like
3

Thank you for the answer, after much more digging on the internet I understand better. Because the US doesn’t ask for a tax registration until you reach Nexus, I’ll start selling to the US right away.

Thank you !

4

Hi Jolijosi,

I’m literally in the same boat except I’m from the UK wanting to sell to the US, have you solved this issue cause I really need advice, this whole tax thing is quite overwhelming or maybe I’m just overthinking everything.

5

Thanks for the information as well.

So if I’m located and registered in Canada, but my products are stored in the US, can I sell to the US without collecting taxes until I reach that threshold? Or is it different when my products are stored in the US?

Any input would be great.

6

It’s my understanding that if you have a store, a warehouse, a sales
person, or any other physical presence in a state, then you have nexus in
that state and they will expect you to register and collect sales tax on
sales within that state where the item or taxable service has a delivery
address within the state. I’d go to that state’s sales tax site and study
their rules. It won’t be the same in all states. Tax rate is usually based
on the ship to address. I don’t know if there are any exceptions to being
based in Canada but I doubt that there would be. I think that physical
nexus requires registering regardless of sales volume but I could be wrong
so read up on that. You may be required to register for an FEIN as well but
again I am not sure.