SALES TAX

 

SALES TAX POLICY UPDATE

In accordance with the U.S. Supreme Court's decision in South Dakota v. Wayfair, states can mandate out-of-state sellers to collect sales tax even without a physical presence in the state. Consequently, A1 American is obligated to collect sales tax on shipments to states where we meet economic nexus thresholds. The applicable taxing jurisdiction is determined by the destination address of the delivered goods, including drop shipments made on behalf of out-of-state businesses. 

 

Economic Nexus Thresholds:

An economic nexus threshold is a tax law concept that determines whether a business has a sufficient economic presence in a state, requiring it to collect and remit sales tax.  Economic nexus thresholds vary by state and are subject to change.  As of January 1, 2025, several states have eliminated the 200-transaction threshold, and instead are focusing solely on sales revenue to establish nexus, thereby requiring A1 American to collect sales tax.  

 

Our Sales Tax Collection:

We currently collect Sales Tax in all States excluding the States with No Statewide Sales Tax (see below).

 

States with No Statewide Sales Tax:

The following states do not impose a statewide sales tax:

  • Alaska
  • Delaware
  • Montana
  • New Hampshire
  • Oregon

Please note that while these states do not have a statewide sales tax, some local jurisdictions, particularly in Alaska, may impose local sales taxes.

 

Exemption Certificates:

If your organization holds a valid sales tax exemption certificate, please provide it to us to prevent sales tax from being applied to your invoices.

A1 American is committed to complying with all applicable sales tax laws and regulations. We will continue to monitor changes in state tax laws and adjust our practices accordingly. For the most current information or if you have any questions, please contact our customer service department at customerservice@a1american.com.

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