Is your enterprise doing brisk business in the US or planning to start exporting there in 2027? With a US$32 trillion GDP and a 342-million-strong population, the US remains the world’s largest market and a critical destination for ambitious Australian brands seeking to scale.

However, selling into the US is far from straightforward. The country has a complex patchwork of state-based rules and local tax jurisdictions that operate very differently from Australia’s GST system. Assuming you understand the rules has cost many Australian exporters dearly in time, trouble, and unexpected bills. In fact, Avalara research shows Australian businesses spend over 9 per cent of cross-border revenue just managing compliance, customs, tax, and regulation.

Here are five pervasive US sales tax myths that trip up exporters – and what you need to know instead.

Many Australian businesses selling online believe that without an on-the-ground office, sales tax doesn’t apply. This is a costly misconception.

In the US, states enforce economic nexus – a legal requirement to register, collect, and remit sales tax once you exceed specific revenue or transaction thresholds, regardless of whether you have an office or staff in that state. These thresholds vary significantly: California sets its threshold at $500,000 in gross sales, while Georgia triggers liability at $100,000 or 200 separate retail transactions. Once you cross a threshold, compliance is just as mandatory for an Aussie e-commerce business as it is for a local US retailer.

You might think an offshore exporter is too small or distant for US state revenue departments to notice.

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