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US closing sales tax loopholes for foreign sellers

  • Jan 4, 2021 | Richard Asquith

A number of US states are tightening their rules on the obligations for foreign, or ‘remote’ e-commerce sellers to register and charge sales tax to local consumers. Upcoming changes include:

  • Arizona has lowered the annual sales threshold for remote sellers’ sales tax obligations from $150,000 to $100,000 from 1 January 2021. The same threshold applies for remote marketplaces which facilitate remote sellers’ local transactions – they take on the taxing obligations.
  • Florida looks set to become one of the last states to impose remote sales tax obligations - 'economic nexus'. There are two bills under review for 2021. This follows the 2018 South Dakota vs Wayfair Supreme Court ruling. This triggered the right for states to impose sales tax obligations on remote sellers. Over 40 states have since done so. 
  • Missouri is another of the last states without a remote seller sales tax regime. It is considering legislation with a $100,000 threshold.

Contact Avalara for a free assessment of your potential US sales tax position across the states.

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is the former VP Global Indirect Tax at Avalara
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