We operate a UK based and reg'd business. We buy a product from a US based supplier who dropships the products to our US based customers. Therefore we have no physical presence in the US and no physical inventory holding or associated costs. We take the orders and the supplier fulfills 100% of our orders,
Does this mean I am not liable for paying US sales tax?
My name is Dakota and I am Guru here at Shopify.
you only have to collect sales tax in these states if you have what's called “sales tax nexus.” Nexus is established when you have a significant business presence in a state, which can include things like:
If you suspect you might have a physical presence in a state, you could check with that state’s taxing authority to determine whether or not you have sales tax nexus.
Hopefully this clarifies things :)
Dakota, Shopify Guru
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