Sales TaxSep 02, 20261 min read
K-Beauty and sales tax — nexus across Amazon, Shopify and distributors
U.S. sales tax differs by state, and obligations follow your channels and inventory. What to check for each channel.
This article is general information, not legal or tax advice. It requires review by U.S. accounting and legal professionals before publication.
The U.S. has no federal VAT. Instead, states and local governments impose sales tax, and the connection that creates a filing duty in a state is called nexus.
Two ways nexus arises
- Physical nexus: an office, employees or inventory in the state — which can include inventory stored in Amazon FBA warehouses.
- Economic nexus: sales into the state above that state's threshold, measured in revenue or transactions. Thresholds differ by state.
How channels change the picture
Amazon marketplace: In most states, marketplace facilitator rules make Amazon collect and remit the tax. That does not always remove the seller's own registration duties.
Shopify / own site: You collect and file the tax yourself, so tracking where nexus exists matters.
Distributors / wholesale: Sales for resale can be exempt with a resale certificate, which you need to keep on file.
In short
Every new channel can change your nexus footprint. Mapping state duties by channel and inventory location before you launch reduces the risk of back-filing later.