Navigating U.S. Sales Tax Registration: A Guide for Foreign Sellers
When entering the U.S. market, one of the first steps for international sellers and e-commerce businesses is to register for sales tax number. This process is essential for complying with state tax regulations and avoiding penalties. In a market as complex as the United States—with its decentralized tax system and varying state rules—understanding when and how to register can make the difference between smooth expansion and regulatory trouble.
Why Sales Tax Registration Matters
Sales tax in the U.S. is not managed at the federal level but is governed individually by each state. As such, obligations can vary significantly depending on where your customers are located. If you're a non-U.S. company selling goods to American consumers—whether through your own website, an online marketplace, or via local fulfillment centers—there’s a high chance you’ll need to register for a sales tax number in one or more states.
The requirement typically arises when you establish a "nexus" in a state. Nexus is a legal term that means your business has a sufficient connection to that state to trigger tax obligations. Nexus can be physical—such as storing inventory or employing staff—or economic, which usually means crossing a certain threshold in sales revenue or transaction volume. Many states enforce economic nexus laws, especially after the 2018 South Dakota v. Wayfair Supreme Court ruling.
Who Needs to Register?
Several categories of international sellers often fall under sales tax rules:
Online retailers selling directly to U.S. consumers
Marketplace sellers using platforms like Amazon or eBay
Importers shipping goods to U.S. warehouses
Manufacturers fulfilling orders from within U.S. territory
Even without a physical presence, consistent sales or fulfillment activity may trigger registration requirements in multiple states.
The Registration Process
Registering for sales tax in the U.S. involves several steps, which must be done individually for each applicable state:
Identify Nexus StatesFirst, determine in which states your business has nexus—whether through sales volume, physical presence, or other activities. Each state has its own threshold for economic nexus, usually based on annual sales or transaction counts.
Prepare Business InformationYou’ll need to gather company documents, including foreign business registration, tax identification numbers, and potentially U.S. bank account details or representatives.
Apply for Sales Tax PermitsMost states offer online registration portals. Some states approve registration instantly, while others may take several weeks to process.
File and Remit TaxesOnce registered, your business must regularly file returns and remit collected taxes according to each state’s schedule. Late or incorrect filings can result in penalties or audits.
How Lovat Can Help
For foreign sellers, navigating 50 different state tax systems can be daunting. That’s where tax compliance platforms like Lovat become indispensable. Lovat offers automated tools that help you:
Identify where you have nexus
Manage multi-state sales tax registration
Calculate accurate tax rates at checkout
File tax returns automatically
Stay compliant with changing state laws
Lovat’s platform is especially useful for companies operating across borders and selling on multiple marketplaces. It streamlines compliance, reduces manual work, and minimizes the risk of tax errors.
Start Smart, Scale Smoothly
Entering the U.S. market offers enormous growth potential, but it also brings regulatory complexity. Registering for a sales tax number is a key compliance step for any non-U.S. seller. By understanding your obligations early and partnering with an experienced tax technology provider, you can avoid costly mistakes and build a strong foundation for sustainable growth.
Whether you’re an importer, a manufacturer, or a global e-commerce brand, proactive sales tax registration helps you stay legal, competitive, and trusted in one of the world’s most dynamic markets.