Does Amazon handle sales tax for me?

For sales made through Amazon, marketplace facilitator laws make the marketplace responsible for collecting and remitting in states where those laws apply. That does not cover sales through your own website, where the obligation remains yours once you have nexus.

Can storing inventory create nexus?

Yes. Inventory held in a fulfilment warehouse in a state is generally physical presence in that state. Sellers routinely acquire obligations in states they have never visited, through routing decisions made by the fulfilment network rather than by them.

Do non-US sellers have sales tax obligations?

Yes. Sales tax nexus rules apply based on connection with a state, not on where the seller is established. A foreign-owned company selling into the US can cross economic nexus thresholds like any other seller.

US business taxes: every form, deadline and obligation

Guide · 2 min read

Sales tax nexus: when you must register in a state

Sales tax is not your money, which is why getting it wrong is expensive. Nexus is the concept that decides where you owe.

The short answer

Sales tax nexus is a connection with a US state sufficient for it to require you to register and collect. It arises from physical presence such as inventory or staff, or from economic activity exceeding a state's sales or transaction threshold. Thresholds vary by state and change.

The two kinds of nexus

Physical nexus — inventory, employees, contractors, an office, or a fulfilment warehouse holding your goods.
Economic nexus — exceeding a state's sales or transaction threshold, with no physical presence at all.

Economic nexus thresholds differ by state and have been revised repeatedly since 2018. Any list you find, including on this site, should be verified against the state before you rely on it.

Where marketplace laws help

States now generally require the marketplace to collect and remit on sales made through it. Amazon and Etsy handle their own channels. The gap is your own storefront — a Shopify site you own is not a marketplace, so once you have nexus, collecting there is your responsibility.

For the e-commerce specifics including inventory and payouts, see e-commerce operations.

Frequently asked questions

Does Amazon handle sales tax for me?: For sales made through Amazon, marketplace facilitator laws make the marketplace responsible for collecting and remitting in states where those laws apply. That does not cover sales through your own website, where the obligation remains yours once you have nexus.
Can storing inventory create nexus?: Yes. Inventory held in a fulfilment warehouse in a state is generally physical presence in that state. Sellers routinely acquire obligations in states they have never visited, through routing decisions made by the fulfilment network rather than by them.
Do non-US sellers have sales tax obligations?: Yes. Sales tax nexus rules apply based on connection with a state, not on where the seller is established. A foreign-owned company selling into the US can cross economic nexus thresholds like any other seller.

Sources

Last reviewed August 23, 2026. Verify against the primary source before acting.

Founders 8 does not provide tax advice. Tax residency depends on facts and rules specific to each jurisdiction — review your position with a qualified adviser.

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