If you’re selling into the United States from abroad, for instance the UK, EU, Israel, or anywhere else: One of the most confusing topics is sales tax nexus.

If you’re selling into the United States from abroad, for instance the UK, EU, Israel, or anywhere else: One of the most confusing topics is sales tax nexus.

“Nexus” simply means a connection strong enough that a state can require you to register, collect, and file sales tax.

There are four ways you can create that obligation:

1. Physical Nexus

If you have any physical presence in a state, you have nexus.

This includes:

 • Inventory stored in a U.S. warehouse

 • Amazon FBA stock

 • A rented office or coworking space

 • Employees, contractors, or sales reps in the state

 • A U.S. fulfillment center

Physical nexus is immediate.

If your inventory sits in a state, you must collect their sales tax.

2. Economic Nexus

Created when your sales INTO a state exceed that state’s threshold.

Many states use:

$100,000 in sales OR 200 transactions per year

(Thresholds vary.)

Key point:

You can be 100% abroad — shipping from the UK or Israel — and still trigger economic nexus.

No employees, no office, no warehouse needed.

Once you cross the threshold, you must:

 • Register

 • Collect sales tax from customers

 • File returns

3. Affiliate Nexus

Triggered when someone else in the U.S. helps drive your sales.

For example:

 • A related company operating in the state

 • A distributor who promotes your brand

 • A marketing affiliate that refers customers

 • A sister LLC or partner company with overlapping ownership

If they help your business make sales, states can treat that as your presence.

4. Click-Through Nexus

Applies when:

 • U.S. websites or influencers link to your store,

 • …and they receive commissions for referrals.

If their referrals exceed a certain threshold (often around $10,000 per year), the state treats that as a taxable presence, even if you’re completely outside the U.S.

Bottom Line:

Non-U.S. companies often assume “I’m not in America, so no sales tax.”

But the reality is:

You can trigger nexus without ever stepping foot in the United States.

With the right planning, this doesn’t need to be overwhelming.

Sales tax compliance can be handled for you, allowing you to sell into the U.S. market confidently and safely.

If you want help reviewing your exposure, or setting up compliance correctly from day one, feel free to reach out.