Looking for USA Tax Updates? Here Are 5 Things International Sellers Must Know Today

by Ariful | Mar 17, 2026 | US Updates

Prepare for the Section 122 Surcharge

The most significant shift in U.S. trade policy this year follows the Supreme Court ruling on February 20, 2026. The court determined that tariffs previously issued under the International Emergency Economic Powers Act (IEEPA) were invalid. In response, the U.S. government moved quickly to implement a new framework.

As of February 24, 2026, a Section 122 surcharge under the Trade Act of 1974 has replaced the old IEEPA tariffs. Currently, this surcharge is set at 10%, but it is expected to increase to 15% in the coming months. This surcharge applies to the vast majority of imported goods entering the United States.

What you must do:

• Update your landed cost models: Immediately factor in a minimum 10% surcharge for all U.S. imports.
• Audit your current inventory: Determine how this additional cost impacts your current pricing strategy.
• Stay alert for the 15% hike: This increase is expected to happen with little warning once the administrative transition is complete.

Manage the Complexity of Stacking Tariff Rates

The new Section 122 surcharge does not exist in a vacuum. It is an “additive” tax, meaning it stacks on top of existing trade barriers. If your products were already subject to Section 232 (steel and aluminum) or Section 301 (China-specific) tariffs, you are now facing multiple layers of duties.

This stacking effect significantly increases the compliance burden for international sellers. U.S. Customs and Border Protection (CBP) systems are currently being updated to handle these complex calculations. During this transition, incorrect tariff coding is a high risk.

Why this matters for your compliance:

• Avoid costly corrections: If your customs broker uses outdated codes, you may face retroactive bills or penalties once the CBP systems are fully synchronized.
• Calculate for the “Worst Case”: We recommend modeling your margins under both the 10% and 15% scenarios to ensure your business remains viable regardless of sudden rate hikes.
• Maintain precise records: As part of your ongoing international bookkeeping, keep every customs entry form organized for potential audits.

Account for Continued Suspension of Duty-Free Exemptions

For years, many e-commerce sellers relied on the “de minimis” threshold, which allowed low-value shipments (under $800) to enter the U.S. duty-free. However, the suspension of these minimum duty-free allowances remains in full effect in 2026.

This means that even small, individual parcels sent directly to consumers are now subject to the same Section 122 surcharges and tariffs as bulk shipments. This change has fundamentally altered the direct-to-consumer (DTC) model for international brands.

Take these steps to protect your margins:

• Notify your customers: Ensure your checkout process clearly explains who is responsible for these duties to avoid “package refusal” at the border.
• Consider bulk warehousing: Moving goods in larger quantities to a U.S.-based fulfillment center may allow for more predictable duty management compared to thousands of individual small-package entries.
• Use a VAT calculator for global sales: If you sell across multiple regions, use tools to see how different tax environments compare to the current U.S. situation.

Align with Global VAT and GST Registration Trends

While the U.S. focuses on surcharges and sales tax, the rest of the world is following suit with digital and physical goods taxation. More than 100 countries now require foreign sellers to register for VAT or GST when serving local consumers.

The U.S. “Economic Nexus” rules for sales tax are becoming the global blueprint. If you are selling into the U.S., you likely have obligations in other major markets too. For instance, Turkish sellers or European brands expanding into the U.S. must often manage parallel compliance tracks.

Stay compliant across borders:

• Monitor Nexus thresholds: In the U.S., each state has different rules (often $100,000 in sales or 200 transactions) that trigger sales tax registration.
• Expand with confidence: If you are also looking at European markets, ensure you understand specific rules for VAT e-invoicing and EU VAT registration for non-EU sellers.
• Consolidate your filing: Don’t manage ten different logins for ten different tax authorities. Use a Global Tax Compliance Suite that brings your U.S. Sales Tax and international VAT/GST filings into one managed workflow.

Review Incoterms to Determine Tariff Liability

Who pays the new 10-15% Section 122 surcharge? The answer lies in your Incoterms (International Commercial Terms). This is the “fine print” that determines whether the seller or the buyer is legally responsible for duties and taxes at the border.

If you are selling under DDP (Delivered Duty Paid) terms, you are responsible for the Section 122 duties. If you haven’t raised your prices to reflect the new 10% surcharge, that cost comes directly out of your profit. Conversely, under DAP (Delivered at Place) or FOB (Free on Board), the buyer or importer of record bears the cost.

Actionable instructions for sellers:

• Reassess supplier contracts: Review your agreements with manufacturers and freight forwarders.
• Adjust pricing strategies: If you keep DDP terms to provide a better customer experience, you must increase your retail price to cover the 10-15% surcharge.
• Consult with experts: Determining the right Incoterm is a balance between customer satisfaction and financial risk. This is why having a compliance partner is essential.

Your 2026 USA Tax Compliance Checklist

To help you stay organized, here is a quick checklist of what you should be doing this week:

• Check your HS Codes: Ensure your product classifications are accurate to avoid overpaying on the new surcharges.
• Review Sales Volume: Identify which U.S. states you have reached “Economic Nexus” in for Sales Tax purposes.
• Update Pricing: Recalculate your DDP pricing to include the 10% Section 122 surcharge at minimum.
• Audit Inventory: Determine the cost impact on goods already in your U.S. warehouse.
• Communicate with Customers: Prepare messaging about potential price increases or duty responsibilities.
• Review Freight Agreements: Confirm whether your freight forwarder will handle the new surcharge documentation.
• Schedule a Compliance Review: Meet with a tax professional to ensure all aspects of your business are aligned with 2026 regulations.

How to Choose the Best US State for Your Sales Tax Registration (Compared)

by Ariful | Mar 17, 2026 | US Updates

Understand the “Nexus” Trigger Before You Choose

Before comparing states, you must understand why you are registering. In the US, you only register for sales tax in states where you have “nexus”, a significant connection.

1. Physical Nexus: Having an office, employees, or inventory in a state. If you use Amazon FBA or a 3PL (Third-Party Logistics) provider, you likely have physical nexus in every state where your goods are stored.
2. Economic Nexus: Reaching a specific sales threshold (typically $100,000 in sales or 200 transactions, though many states are now removing the transaction count requirement in 2026).

Register only where required. Don’t volunteer for taxes you don’t owe. However, if you have a choice of where to house your inventory or where to focus your marketing, the following comparisons will help you strategize.

The “NOMAD” States: Zero Sales Tax

If your goal is to minimize the tax burden on your customers and simplify your life, the “NOMAD” states are the gold standard. These five states do not have a general state-level sales tax:

• New Hampshire
• Oregon
• Montana
• Alaska (Note: Some local municipalities in Alaska do charge sales tax, though there is no state-level tax).
• Delaware

The Benefit: If you base your operations or warehouse in Delaware, you don’t have to worry about collecting sales tax on items shipped from that location to other no-tax states. It also makes your pricing more competitive for local customers.

The Strategy: Many international sellers choose to incorporate their US LLC in Delaware for its business-friendly laws, but remember: you still have to collect sales tax in other states if you ship goods to customers there and meet their nexus thresholds.

Best States for Simplicity and Low Rates

For many businesses, the nightmare isn’t the tax rate itself, it’s the calculation. Some states have a single flat rate, while others allow every tiny town to add its own “local” tax on top of the state rate.

1. Kentucky (The Simplicity Leader)

Kentucky remains a favorite for international sellers. It features a flat 6% sales tax rate across the entire state. There are no local jurisdictions, no city taxes, and no county add-ons.

• Why it works: You always know the rate. Whether you sell to someone in Louisville or a rural farm, it’s 6%. This makes your bookkeeping and tax calculations incredibly straightforward.

2. New Jersey

New Jersey offers a flat 6.625% state rate. Similar to Kentucky, there are no local sales taxes.

• Why it works: It’s a major logistics hub. If your goods enter through the Port of New York and New Jersey, registering here is often a necessity. The lack of local complexity is a massive relief for your compliance team.

3. Michigan

Michigan holds a steady 6% rate with no local sales taxes.

• Why it works: It provides a predictable environment for businesses looking to scale in the Midwest without getting bogged down in municipal filings.

The “Home Rule” States: Proceed with Caution

If you are looking for ease of compliance, you should generally avoid focusing your physical presence in “Home Rule” states unless your market data demands it. In these states, local cities and counties administer their own taxes, often requiring separate registrations and filings.

• Colorado: Rates can fluctuate from 2.9% to over 11% depending on the specific street address.
• Alabama: Known for complex local requirements that can make manual filing nearly impossible for a small team.
• Louisiana: Extremely fragmented local tax authorities.

The Sterlinx Advice: If you have economic nexus in these states, you must register. However, if you are choosing where to set up your first US warehouse, these states will significantly increase your administrative costs.

Comparing Popular States for International Sellers

The Impact on International Sellers

For a non-US resident, US sales tax registration is not just about the money; it’s about the documentation. To register, you will generally need:

• An EIN (Employer Identification Number) from the IRS.
• A US business address (virtual offices often work).
• A breakdown of your sales by state.

Don’t worry about the lack of a Social Security Number (SSN). While many state forms ask for one, most states have alternative procedures for international owners. This is where having a partner like Sterlinx Global becomes essential. We bridge the gap between US regulatory requirements and your international reality.

Managing Finances Across Borders

Choosing a state is only half the battle. You must also manage the currency exchange and the movement of funds to pay these tax authorities. Many sellers lose 3-5% of their margin simply on poor exchange rates when paying their US tax bills. We recommend exploring cross-border currency management to protect your profits.

Step-by-Step Selection Guide

If you are currently deciding where to register, follow this check