USA Update: North Carolina Gives Remote Sellers a 60-Day Registration Grace Period, What International Sellers Must Do

by Ariful | Nov 1, 2026 | US Updates

Know when the new rule applies

Under Session Law 2026-31, Section 3.1, the change took effect on July 2, 2026. It applies to remote sellers and marketplace facilitators that exceed the applicable threshold on or after that date and have no other basis for being required to collect North Carolina sales and use tax.

A seller whose only North Carolina connection is crossing the threshold is considered engaged in business on the first day of the first calendar month that begins at least 60 days after exceeding it. You must register and begin collecting and remitting tax by that date.

This is a registration and collection grace period, not an exemption from the state’s sales tax rules. Once your start date arrives, you must be ready to collect tax on applicable sales and meet your filing and remittance obligations.

Track the $100,000 threshold across your sales

North Carolina’s threshold is more than $100,000 in gross sales sourced to the state during either the current or previous calendar year. The test uses gross sales, not just taxable sales. Exempt sales, sales for resale and marketplace-facilitated sales can count toward the calculation.

Combine sales across your channels. If you sell through your own website and one or more marketplaces, do not check each channel in isolation. Review your North Carolina-sourced sales across all channels and keep a record of how you calculated the total.

North Carolina repealed its former 200-transaction test effective July 1, 2024. The current remote-seller threshold is based on sales, not a transaction count. You can check the North Carolina Department of Revenue’s remote sales FAQs for further information on how sales are counted.

Marketplace facilitators have a separate calculation. Their threshold includes gross sales sourced to North Carolina, including marketplace-facilitated sales for all marketplace sellers. Sellers using a marketplace should distinguish their own registration and reporting responsibilities from the facilitator’s obligation to collect tax on facilitated transactions.

Use the calendar examples to find your start date

The NCDOR Important Notice, issued August 6, 2026, explains how to calculate the date. Its examples show how the 60-day period works:

• Remote seller crosses the threshold on July 5, 2026: The seller becomes engaged in business on October 1, 2026. Registration and collection must begin on or before that date.
• Marketplace facilitator crosses the threshold on November 27, 2026: The facilitator becomes engaged in business on February 1, 2027. Registration and collection must begin on or before that date.

Do not assume the start date is simply 60 days after the day you cross the threshold. The rule uses a calendar-month calculation. Record the date you exceeded the threshold, then calculate the first calendar month beginning at least 60 days afterward. Build in time to complete registration and update your checkout and tax settings before the start date.

Check for physical presence before relying on the grace period

The 60-day window is available only when exceeding the sales threshold is your sole basis for being engaged in business in North Carolina. Another connection can remove the delay, even if your sales are below $100,000.

Review your operations for links to North Carolina, including:

• Inventory held in a North Carolina warehouse or fulfillment center.
• Stock stored in the state by a third-party logistics provider or Amazon FBA.
• Employees, contractors, agents or representatives operating in North Carolina.
• Other physical activity or circumstances that may create a separate legal requirement to register and collect tax.

NCDOR gives the example of a retailer that opens a North Carolina warehouse. That retailer must register and begin collecting tax on or before the date its physical presence begins, even if it has not crossed the sales threshold. In practice, an Amazon seller should check where its inventory is held, not just where its company is based or where most customers are located.

If you discover North Carolina inventory or another relevant connection, do not rely on the 60-day threshold rule. Review your registration and collection requirements for the date that physical presence or other legal basis began.

Check whether your threshold was crossed before July 2

The new timing rule applies only to sellers that crossed the threshold on or after July 2, 2026. If you exceeded the threshold before that date, the law in effect when you crossed it continues to determine your obligations. The new grace period does not automatically reset or postpone an earlier registration or collection requirement.

This makes accurate historical records important. Keep sales totals by state and calendar year, along with the dates on which your business passed relevant thresholds. For marketplace sales, retain the reports needed to distinguish your own transactions from marketplace-facilitated sales and to understand how they contribute to the applicable calculations.

Prepare your registration and tax process in advance

If the new period applies to you, use the time to organize the steps required for compliant operations:

1. Confirm your North Carolina sales total. Include sales sourced to the state across channels and check both the current and previous calendar years.
2. Review your business footprint. Confirm whether you have inventory, staff, contractors or other activity in North Carolina.
3. Establish your start date. Apply the calendar-month calculation in NCDOR’s notice and note the registration and collection deadline.
4. Register with NCDOR. You can use the department’s online registration system or the Streamlined Sales Tax Registration System.
5. Prepare your sales systems. Set up collection for the applicable start date and check that product, shipping and transaction data can support accurate tax calculations and reporting.
6. Keep the evidence. Save sales reports, marketplace statements, inventory-location information, registration confirmations and filing records. Organized records make ongoing compliance easier and help you explain your calculations if questions arise.

A structured bookkeeping process helps you

USA Update: CBP Temporarily Waives PGA Data for Mail Entry Type 13 Filings, What International Sellers Must Do

by Ariful | Oct 31, 2026 | US Updates

TITLE: CBP’s Temporary ET13 Mail Entry Flexibility: What Sellers Need to Know Before January 20, 2027

CBP is temporarily accepting certain international mail Entry Type 13 (ET13) filings without complete electronic Partner Government Agency (PGA) data. This gives eligible filers time to start using the new process while they build the capability to transmit complete PGA information.

The flexibility is temporary. CBP says it will announce when it ends, and the mandatory implementation date for specified mail shipments is January 20, 2027. If you sell to US customers by international post, use this transition period to confirm who handles entry, prepare accurate shipment data, and coordinate with your postal intermediary or broker.

Know what CBP has changed

CBP announced the ET13 test in a Federal Register notice published on June 24, 2026. The test began on September 22. ET13 provides an electronic informal-entry route in the Automated Commercial Environment (ACE) for qualifying international mail shipments valued at $2,500 or less. This includes shipments that were previously eligible for the de minimis duty exemption.

ET13 is an alternative to the interim informal mail entry process under 19 CFR 145.12(b). It also creates a route for certain low-value postal shipments that cannot use that interim process because they involve PGA data requirements or duties other than those set out in Chapters 1–97 of the Harmonized Tariff Schedule of the United States (HTSUS). Examples include certain Section 201, 232, and 301 trade remedy duties.

On October 22, 2026, CBP modified the test to temporarily accept ET13 filings with or without complete electronic PGA data. The purpose is to let filers begin using ET13 while developing the ability to submit all required PGA data electronically. The modification does not erase the underlying PGA requirements or make the temporary accommodation permanent. Read the October 22 Federal Register notice, 91 FR 66707 for the terms.

Keep the dates and entry rules clear

There are two related developments to track:

• The ET13 test commenced on September 22, 2026.
• CBP announced on October 14 that mandatory implementation for the specified informal postal entries would move from October 22, 2026, to January 20, 2027.
• The October 22 Federal Register modification temporarily allows ET13 filings without complete electronic PGA data while filers build their capability.

CBP says there are no changes to international mail entry procedures before January 20, 2027. From that date, ET13 is required for informal entry of international postal shipments subject to Section 201, 232, or 301 duties, or under a PGA’s jurisdiction. See CBP’s announcement of the extended implementation date.

This date extension is not a blanket exemption from customs requirements. Shipments valued above $2,500, and shipments subject to quotas or antidumping or countervailing duties, are not eligible for informal ET13 entry under the test and generally require formal entry. CBP may also require formal entry where necessary to protect revenue.

Decide who will act as importer of record

Before sending orders by international post, identify who has responsibility for making the US entry. Under CBP’s test, the importer of record (IOR) must be the owner or purchaser of the merchandise, or a licensed customs broker properly appointed by the owner, purchaser, or consignee.

Do not assume a postal operator, carrier, or shipping intermediary automatically becomes the IOR. CBP’s June notice explains that a consignee who is not the owner or purchaser (such as a postal operator, USPS, freight forwarder, or carrier) must use a licensed broker acting as the IOR.

For postal-channel US sellers and UK or EU sellers mailing orders to American customers, document the arrangement before dispatch. Confirm with your postal intermediary or broker:

• Which party will file the entry electronically in ACE.
• Whether a broker is properly appointed and acting as IOR.
• Who supplies shipment, classification, value, and origin information.
• How duty, tax, and other charges will be calculated, paid, and recorded.
• How exceptions, rejected filings, and requests for additional information will be handled.

Clear responsibility reduces the risk of missed data, delayed clearance, and uncertainty about who must correct a filing.

Prepare your shipment and ACE data

ET13 is an electronic entry process, so your records need to support accurate shipment-level data. CBP’s test notice identifies core details such as the IOR and filer codes, merchandise description, country of origin, applicable 10-digit HTSUS classification, value, duty rate, total duty owed, carrier, tracking number, and arrival port. Quantity and weight are required where the applicable duty calculation uses specific rates.

Where relevant, Chapter 98 or Chapter 99 merchandise and free trade agreement duty-free claims require additional data. Shipments with PGA requirements may also require agency-specific information. The temporary acceptance of filings without complete electronic PGA data should not be treated as permission to ignore those obligations.

Create a repeatable data handoff with your broker or postal intermediary. Keep product descriptions and classifications consistent with your product records. Preserve commercial invoices, shipment tracking references, origin information, entry records, and evidence of duties paid. This helps you resolve discrepancies and maintain a dependable accounting trail.

Use the grace period to build filing capability

The waiver is a practical window to test your process, not a reason to wait. Work with your broker or ACE filer now to map the data you can provide and identify any missing product or compliance information.

A useful readiness checklist:

1. Review your postal shipments. Identify which products, order values, and destinations may fall within ET13’s scope.
2. Confirm IOR arrangements. Record who is responsible for each shipment and make sure any broker appointment is in place.
3. Map data requirements. Compare your order, product, and shipping records against the ACE and PGA data needed for relevant goods.
4. Test the handoff. Agree on file formats, submission timing, exception handling, and how filing confirmations will return to your team.
5. Reconcile charges. Match duties and related import costs to the correct orders and accounting records.
6. Monitor CBP notices. CBP will announce the end of temporary acceptance of incomplete electronic PGA data in a future Federal Register notice.

For UK sellers, an ecommerce accountant uk can help keep sales, shipping costs, customs charges, and settlement records aligned in your books. Accounting support does not replace the responsibilities of the IOR, customs broker, or ACE filer. It can, however, help you maintain the records needed to understand the financial impact of cross-border orders. You can also review our UK ecommerce tax and accounting guide.

FAQ

Does the temporary PGA-data acceptance remove the PGA requirements?

No. The October 22, 2026 modification only allows ET13 filings to be accepted temporarily with or without complete electronic PGA data. The underlying PGA requirements remain in place, and CBP will announce the end of this temporary accommodation in a future Federal Register notice. Filers should continue building the capability to submit complete PGA data electronically.

USA Update: Missouri Rules Digital Game Items and Software Subscriptions Are Not Taxable, What International Sellers Must Do

by Ariful | Oct 30, 2026 | US Updates

TITLE: Missouri Digital Products Ruling: What It Means for Your Online Sales Tax

What Missouri’s ruling says

In Letter Ruling LR 8408, issued September 24, 2026, the Missouri Department of Revenue considered a Missouri company operating a peer-to-peer marketplace for Counter-Strike digital cosmetic items. The game and Steam platform are owned by Valve Corporation. The applicant provided listing, search, offer, auction, checkout, transaction-status, dispute, and seller-payout interfaces. It did not take custody of the items, and Stripe processed payments.

The applicant also offered optional access to website and browser-extension features for a monthly, annual, or one-time fee.

The Department concluded that, under the facts presented, transfers of the digital cosmetic items to Missouri users were not taxable sales or services under Chapter 144. The ruling explains that electronically stored information is not tangible personal property and Missouri does not tax nontangible property.

The Department also concluded that the paid software access was not one of Missouri’s enumerated taxable services. The subscription charges were therefore not subject to Missouri sales or use tax under the facts in the request.

You can read the official Missouri ruling, LR 8408.

Why the marketplace-facilitator finding is specific

The ruling also addressed whether the applicant had to act as a marketplace facilitator. Missouri’s definition requires a facilitator to collect and transmit payments arising from a sale. The Department found that this applicant could not collect and transmit payments between users. It also found that the underlying digital-item transfers were not taxable sales.

That conclusion is not a general exemption for every online platform. A marketplace with different payment arrangements, control over transactions, or taxable products may need to reach a different result. Do not assume your platform has the same treatment simply because it sells game items or uses a third-party payment processor.

What international sellers should do now

If your business is based in the UK or another country and sells digital items or software access to Missouri customers, use the ruling as a reason to review your transaction model, not as a blanket exemption.

Work through these steps:

1. Separate digital-only sales from physical goods. Identify what customers receive, how they receive it, and whether any tangible product is shipped to Missouri. The ruling does not make physical goods nontaxable.

2. Map the payment flow. Record which party collects customer funds, who transfers the proceeds to sellers, and whether the platform controls or facilitates payment. These details can affect marketplace-facilitator analysis.

3. Describe each software charge clearly. Distinguish subscriptions and access to online features from separately sold products, required services, or bundled physical items. The ruling’s software conclusion depends on the service described in the application.

4. Check Missouri exposure for taxable products. Missouri’s remote-seller rules are not a general $100,000 threshold for every kind of digital income. The Department’s guidance focuses on taxable sales of tangible personal property delivered into Missouri. Review the Missouri remote seller and marketplace facilitator FAQs if you sell physical goods.

5. Keep records that support your treatment. Save product descriptions, subscription terms, customer invoices, payment processor statements, marketplace agreements, and delivery records. Clear records make it easier to support your filings and explain how your transactions differ from, or match, the ruling’s facts.

The ruling does not settle tax across the United States

State tax rules differ. Missouri’s treatment should not be applied automatically to customers in another state. Digital products, software access, services, and marketplace transactions can be classified differently depending on the state and the details of the sale.

For example, Washington’s Determination No. 22-0244R considered professional video production represented electronically. The determination treated the activity as a professional service involving human effort, rather than simply as a digital good. It illustrates why the nature of the work and how it is delivered can matter as much as the fact that a transaction happens online.

If you sell in several states, maintain a state-by-state record of your products, customer locations, payment flows, and taxable sales. Your ecommerce bookkeeping should separate digital subscriptions from physical inventory and other services. That gives your ecommerce accountant UK or internal finance team better information for accurate US reporting.

Pay attention to the ruling’s limits

LR 8408 is binding only on the applicant for three years, subject to changes in the law or a court decision. The ruling applies only while the applicant’s facts remain materially as described. If the facts change, the ruling may no longer apply.

For your business, relevant differences could include taking custody of digital items, collecting and transmitting payments between users, changing the nature of subscription features, or bundling digital items with taxable tangible goods. The ruling is not a substitute for checking your own transaction structure.

If you sell both downloadable products and physical goods, keep those sales distinct. A digital-only conclusion does not remove collection obligations that may apply to taxable physical goods shipped to Missouri. The same separation helps when reconciling Shopify accounting UK or Amazon FBA accounting UK records with US sales and marketplace reports.

International businesses should also keep their US sales tax records separate from their VAT, GST, and other domestic compliance records. A UK company’s ecommerce bookkeeping UK process may need to capture the same transaction in more than one reporting workflow, but each jurisdiction applies its own rules. Businesses using US importers of record should also avoid confusing customs responsibilities with state sales tax obligations; they address different parts of cross-border trade.

For a broader overview of US compliance, see our guide to USA tax compliance for international sellers and our page on tax compliance for e-commerce marketplaces.

Frequently asked questions

Does Missouri tax digital game items?

LR 8408 concluded that the specific digital cosmetic item transfers in the applicant’s case were not taxable sales or services under Missouri Chapter 144. The ruling is fact-specific and does not establish the treatment of every digital product or platform.

Are software subscriptions taxable in Missouri?

The Department found that the applicant’s paid software access was not on