Introduction In how many U.S. states does your business have a sales tax collection obligation today — and how many of those states have you actually registered in? That is the single question that defines U.S. sales tax compliance for every business — foreign or domestic, large or small, with U.S. customers or without. The […]

If you run a business in California, understanding sales tax exemptions isn’t just helpful, it can save you money and keep you compliant with the law. Sales tax rules can feel overwhelming, especially with California’s complex regulations, but knowing when and how exemptions apply is key to running your business smoothly.  Let’s break down what […]

Sales tax is a state-imposed tax on the sale of goods and certain services, charged at the point of sale. Typically, the seller adds the tax to the purchase price and remits it to the state tax authority. 

Not all states impose a sales tax. Alaska, Delaware, Montana, New Hampshire, and Oregon do not have a statewide sales tax, so sales tax is generally not collected in these states. However, some local jurisdictions within these states may have their own tax regulations.

Sales tax rules in the U.S. can be complex, especially when purchases or sales happen across state lines. That’s where sales tax exemption becomes important. Certain buyers, such as resellers, nonprofits, or manufacturers, government agencies and diplomats may not be required to pay sales tax on qualifying purchases. But to benefit, the process must be handled correctly, with proper documentation and an understanding of state-specific regulations. 

Sales tax exemptions become especially important and often more complicated when businesses operate across multiple states. Whether you’re a buyer claiming an exemption or a seller accepting one, the rules can vary significantly. Each state sets its own criteria, documentation requirements, and renewal policies, making compliance a moving target. This complexity affects both sides of the transaction: buyers must provide accurate, state-specific certificates, while sellers are responsible for verifying and storing them correctly. 

In today’s highly interconnected global economy, expanding your business beyond borders opens up exciting opportunities—but it also introduces layers of complexity, particularly when it comes to tax compliance. 

As of July 1, 2025, several U.S. states have officially implemented significant tax changes, primarily targeting excise and sales taxes, alongside some adjustments to income and property taxes. These updates reflect a combination of statutory revisions, inflation-related adjustments, and new policies aimed at addressing evolving fiscal needs and emerging industries.

If you’re an Amazon FBA (Fulfilled by Amazon) seller, understanding your responsibilities around U.S. sales tax is more important than ever. Many sellers assume that because Amazon collects and remits sales tax, they’re fully covered. But in reality, your compliance obligations may go beyond collection — and failing to meet them could put your business at risk. 

As businesses expand within the U.S. market, understanding the complexities of sales tax compliance has never been more critical. In 2025, companies will face ongoing challenges as states refine their tax policies, broaden their taxable bases, and streamline tax collection processes. Staying ahead of these changes is vital for maintaining compliance and operational efficiency.