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US 2021 sales tax updates for foreign businesses

  • Jan 10, 2021 | Richard Asquith

1 January 2021 saw a range of updates to the US sales tax regimes, affecting foreign retailers and marketplaces selling to consumers. The growth of states looking to bring non-resident businesses into the sales tax net continues to grow following the 2018 South Dakota vs Wayfair ruling which opened the gates on taxing ‘remote sellers’ – including any foreign seller with no physical presence or ‘nexus’ in the US.

Contact Avalara for free guidance on how the sales tax rules may affect your business, and how we can fully automate your tax and customs obligations.

January 2021 updates include:

  • Illinois updated its remote marketplace tax liability rules: most remote retailers with an obligation to collect sales tax in Illinois will have to collect local tax in addition to state tax.
  • Illinois also brought foreign wineries into the tax next
  • Kentucky there is positive news on allowing remote alcohol produces from shipping DTC.

Get more content like this in our Selling into the USA knowledge hub


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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: richard.asquith@avalara.com. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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