Tax
Tax Charge
Before you set up your US taxes, you need to determine your tax liability, which means whether you're required to collect tax from your customers and remit tax to a state tax authority.
If you're a US-based merchant, then you potentially have tax liability in your own state because of physical nexus. If you frequently sell products to customers in a specific state, then you potentially have tax liability there because of economic nexus, whether or not you're based in the United States.
In the United States, the sales tax that you should charge is affected by several factors:
- The location that your product is shipped from
- The location that your product is shipped to
- Item taxability
- Buyer exemptions