US Sales Tax for European and UK Sellers: Do You Need to Register? (2026 Guide)

In short: Yes, often. Since the 2018 Wayfair ruling, states can make any remote seller collect sales tax once its sales there pass a threshold. That includes European and UK companies. Stock in a US warehouse can create an obligation regardless of sales. Marketplaces collect on sales made through them, not on your webshop sales.

This guide is for EU and UK businesses selling goods or digital products to US customers. It reflects the rules as of October 2026 and quotes state revenue department pages where possible.

Does a European or UK company have to collect US sales tax?

Yes, once it has nexus in a state. Being based outside the US does not exempt you; states treat you as a remote seller like any out-of-state business.

In South Dakota v. Wayfair, Inc., decided on 21 June 2018, the US Supreme Court overruled the old physical presence rule from Quill (Wayfair opinion). States can now require collection based on sales volume alone. This is called economic nexus.

State rules apply to foreign sellers in practice. Texas, for example, tells remote sellers "located outside the United States" how to apply for a permit (Texas Comptroller). Nexus comes in two main forms:

• Economic nexus: your sales into a state exceed its threshold over a set measurement period.
• Physical nexus: you have staff, an office or inventory in the state, including stock in a third-party fulfilment centre.

Nexus is decided state by state. Having nexus in California says nothing about Florida. For a primer, read our quick guide to US sales tax.

Is there a federal US sales tax or VAT you can register for once?

No. The US has no federal sales tax and no VAT. Sales tax is imposed by states, and often by cities and counties, so registration and filing happen state by state.

• No single registration: there is no US equivalent of the EU One Stop Shop. Each state where you have nexus needs its own permit and returns.
• No treaty relief: US tax treaties are income tax treaties (IRS). They do not remove state sales tax obligations, and an EU or UK VAT registration gives no credit in the US.
• States without a sales tax: Alaska, Delaware, Montana, New Hampshire and Oregon have no statewide sales tax. Some Alaskan towns still apply local tax; see the NOMAD states.

How are economic nexus thresholds measured?

Each state sets its own dollar figure, which sales count, and the period it looks back over. Most use $100,000; California, New York and Texas use $500,000.

Five large markets show how much the details vary:

• California: more than $500,000 of tangible personal property delivered into California, in the preceding or current calendar year. Sales by related persons and sales through marketplaces count (CDTFA) (CDTFA marketplace guide).
• Texas: $500,000 of total Texas revenue in the preceding 12 calendar months. This includes taxable, non-taxable, resale and exempt sales. Once over, you must start collecting no later than the first day of the fourth month after the month you exceeded it (Texas Comptroller).
• New York: over $500,000 of goods delivered into the state and over 100 sales, in the preceding four sales tax quarters. Both tests must be met, and marketplace sales count (NY Tax Department).
• Florida: over $100,000 of taxable remote sales into Florida in the previous calendar year, since 1 July 2021 (Florida DOR, TIP 21A01-03).
• Illinois: $100,000 of gross receipts from sales of goods to Illinois buyers over a 12-month lookback period. The 200-transaction test no longer applies from 1 January 2026 (Illinois DOR, FY 2026-12).

Thresholds are usually measured in US dollars of sales into the state, not your worldwide turnover. For every other state, see economic nexus by state.

What if you only sell on Amazon, compared with your own webshop?

If every US sale goes through a marketplace that collects tax, the marketplace usually handles sales tax for you. Your own website sales remain your responsibility.

Under marketplace facilitator laws, the marketplace is treated as the retailer for the sales it facilitates. California says the facilitator, not the seller, collects and pays tax on those sales (CDTFA). The rules still differ by state:

• Registration for marketplace-only sellers: Texas needs no permit from sellers using only a collecting marketplace (Texas Comptroller). California generally does not either, unless you also sell direct or have physical presence (CDTFA).
• Counting toward your threshold: California and New York include marketplace sales when testing your own threshold (CDTFA) (NY Tax Department). So a small webshop alongside Amazon can create a registration duty.
• Returns: in Florida, a registered marketplace seller excludes marketplace sales from its own return and must not collect tax on them (Florida DOR).
• Records: Texas requires all sellers to keep marketplace sales records for at least four years (Texas Comptroller).

Read how marketplace facilitator laws affect sellers for more detail.

Does storing stock in US warehouses (FBA) create nexus?

Yes, in general. Inventory held in a state is physical presence, so it can create a registration duty even if your sales there are small.

California is explicit. An out-of-state seller with stock in a California fulfilment centre "is considered to be engaged in business in California". It must register and file (CDTFA). This applies even when most sales go through a marketplace (CDTFA).

• Stock moves: fulfilment programmes may store your goods in several states, so check where your inventory actually sits.
• Marketplace collection still applies: the marketplace still collects on its own sales. The inventory nexus matters mainly for your direct sales and registration status.
• Keep reports: download inventory location reports regularly; they are your evidence of where nexus started.

For how fulfilment works, see what Amazon FBA is and how it works.

What do you need to register a foreign business for US sales tax?

You register directly with each state's revenue department. State forms may ask for US identifiers such as an EIN or SSN. Some online systems assume a Social Security number, so foreign businesses often apply by email or paper.

• EIN (Employer Identification Number): the IRS online tool is only for businesses with a principal place of business in the US. Businesses based abroad apply by phone, fax or mail (IRS).
• Applying from abroad: without a US place of business, call the IRS on +1 267-941-1099 or fax Form SS-4 to +1 304-707-9471 (IRS, Form SS-4 instructions).
• Responsible party: Form SS-4 asks for the responsible party's SSN or ITIN. "Foreign" or N/A is allowed only if that person has none and is ineligible to obtain one (IRS).
• ITIN: an individual taxpayer number for certain non-resident and resident aliens who cannot get an SSN (IRS). It is a personal number, not a business sales tax ID.

A spot check of Texas shows what to expect. Its permit application asks for the Social Security number of each officer or director and a NAICS industry code. If an owner or officer has no SSN, you cannot apply online and must email or fax form AP-201 instead (Texas Comptroller).

California issues remote sellers without a California location a Certificate of Registration for use tax rather than a seller's permit (CDTFA). Check each state's requirements before you start. Our guides on sales tax permits and common multi-state registration issues cover the process.

How do you stay compliant after registering?

Compliance is a cycle: monitor nexus, register on time, calculate tax at checkout, then file and pay in each state. Missing any step creates back-tax exposure.

1. Monitor nexus monthly: track sales and orders by state against each threshold and measurement period. Include marketplace sales where the state counts them.
2. Register before collecting: collect tax only once you hold a permit, and meet state deadlines. New York gives 30 days to register after crossing its threshold (NY Tax Department).
3. Calculate at the delivery address: many states add local rates. Texas offers remote sellers a single local use tax rate, listed at 1.75%, instead (Texas Comptroller).
4. File and pay on each state's schedule: each state sets its own frequency and due dates. See how to file a sales tax return, state by state.
5. Keep records: store returns, exemption certificates and marketplace reports for audits.

If you may already have past exposure, a nexus study shows where and since when.

How to choose a US sales tax provider: what to look for

Choose by coverage, data handling and who takes responsibility for filing. For EU and UK sellers, support for non-US entities matters as much as features.

• Nexus monitoring: automatic tracking against current state thresholds, including marketplace sales where they count.
• Registration support: help with state permits for businesses without an SSN or US address.
• Integrations: imports from your webshop, payment platform and marketplaces such as Amazon.
• Data validation: address checks, jurisdiction assignment and reconciliation before filing.
• Filing and payment: who submits returns and pays each state, and how deadlines are tracked.
• Audit records: stored returns and documents you can retrieve later.
• Language and time zone: support hours that suit a European team.

Provider categories include checkout calculation engines, sales tax filing platforms, and accountants or outsourced services. Many sellers combine a checkout tool with a filing provider. Taxually's LumaTax covers US and Canadian sales tax: nexus analysis, registration help, return preparation from Stripe, Amazon or Shopify data, filing and stored records.

This guide is general information, not tax or legal advice. Rules change often, so confirm your position with each state or a qualified adviser.

Sources

• South Dakota v. Wayfair, Inc., 585 U.S. 162 (2018), Legal Information Institute
• California CDTFA, Use tax collection requirements after Wayfair
• California CDTFA, Tax Guide for Marketplace Facilitator Act
• California CDTFA, Fulfillment Centers
• Texas Comptroller, Remote Sellers
• Texas Comptroller, Sales and use tax permit
• New York State Department of Taxation and Finance, remote seller registration
• Florida Department of Revenue, Tax Information Publication 21A01-03
• Illinois Department of Revenue, Informational Bulletin FY 2026-12
• IRS, Get an employer identification number
• IRS, Instructions for Form SS-4
• IRS, Taxpayer identification numbers (TIN)
• IRS, United States income tax treaties A to Z