, 2025
This content is for general informational purposes only; rates/thresholds may vary by state and city.
Table of Contents
- What is Sales Tax?
- Difference from VAT
- Nexus (physical/economic) logic
- Registration (permit) - collection - filing
- Frequently asked questions
What is it?
One of the most complex topics for businesses selling in the United States is Sales Tax applications. Unlike the VAT system in Turkey, sales tax in the US is regulated on a state basis, and each state has its own rules.
In this article, we examine in detail what sales tax is, how it works, and how we at Suits Finance provide support in this process.
What is Sales Tax?
Sales Tax is a consumption tax levied on sales of goods and services in the USA.
It is generally paid by the consumer at the point of purchase, and the seller collects this tax and forwards it to the relevant state's tax department.
Suits Finance manages the correct registration, filing, and payment steps on your behalf in sales tax processes, helping you establish a compliant structure.
Difference Between Sales Tax and VAT
- VAT (Turkey): Applied at every stage from production to consumption.
- Sales Tax (USA): Applied only at the stage of sale to the end consumer.
There is no sales tax at the federal level in the USA; taxation is done by state and local governments.
In What Cases is Sales Tax Paid?
Sales tax may apply to the following types of sales
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Physical product sales (clothing, electronics, etc.)
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Digital products and services (applicable in some states)
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Dropshipping and Amazon sales
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Marketplace Facilitator rules (platforms like Amazon, Etsy may collect tax on your behalf)
Suits Finance analyzes the tax obligations of businesses selling on platforms like Amazon, Shopify and completes the necessary registrations.
Sales Tax Differences by State
Each of the 50 states in the USA applies sales tax with different rates and rules. Examples:
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California: 7.25% (can go up to 10% in some cities)
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Texas: 6.25% + local taxes
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New York: 4% + local taxes
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Delaware, Oregon, Montana, New Hampshire: No state-level sales tax
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Alaska: No state-level sales tax; however, many cities/regions may apply local sales tax
Note: Delaware has no state sales tax; however, there is a "Gross Receipts Tax" applied to the seller.
Suits Finance determines which state requires sales tax registration and creates the most suitable strategy for you.
How to Get a Sales Tax Permit?
To collect sales tax, the business must obtain a Sales Tax Permit from the relevant state. Process:
1. Application is made to the state tax department
2. Required documents (company information, EIN, address) are submitted
3. Once the permit is obtained, sales tax can be collected
Suits Finance completes sales tax permit applications on your behalf in all states.
Filing and Payment Process
Sales tax filing is generally
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Done monthly, quarterly, or annually
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Filing period is determined based on the business's sales volume
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The process can be simplified with automation tools (TaxJar, Avalara, etc.)
Suits Finance works integrated with automation systems to ensure your sales tax filings are submitted on time and completely.
Sales Tax Compliance for International Sellers
The sales tax process is more sensitive for those selling products from Turkey to the USA or foreign entrepreneurs who have established an LLC in the USA. Especially when economic nexus is established, the obligation to collect tax begins on a state basis.
Suits Finance provides special tax compliance consulting to businesses selling from Turkey to the USA.
Conclusion
The sales tax system in America can be complex due to its state-based structure. However, it is possible to operate compliantly within this system with correct registration, filing, and payment processes. Especially for e-commerce businesses, sales tax management is one of the cornerstones of legal compliance.
If you are selling or planning to sell in America, we at Suits Finance are ready to manage your sales tax processes on your behalf. Contact us now, grow your business with confidence.
Frequently Asked Questions
- If I choose a "no sales tax state," won't I deal with sales tax at all?
No. The states where you deliver/do business (and factors like Amazon warehouse locations) can create obligations.
- Is getting a permit in one state enough?
Generally no. Registration may be required in whichever state your activity/nexus is established.
Contact / Support (optional)
You can manage sales tax registration, filing, and compliance processes with Suits Finance.