AliExpress Now Required to Collect Sales Taxes in 45 US States

Impact on US Consumers

AliExpress, the popular Chinese online marketplace, is now required to collect sales taxes from US consumers who reside in the 45 states that impose such a tax. This move, which took effect in November, has raised concerns among some customers who were previously exempt from sales tax when purchasing from AliExpress.

Business Implications

The sales tax collection requirement also has implications for businesses that purchase products from AliExpress for resale. These businesses may need to adjust their accounting and tax filing procedures to account for the sales tax they collect from their customers.

Resolution Options

There are several options available for businesses that need to address the sales tax issue with AliExpress:

• Contact AliExpress: Businesses can contact AliExpress directly to request an exemption from sales tax. They will need to provide documentation to prove that they are a reseller and that they are authorized to collect and remit sales tax.
• Use a Different Marketplace: Businesses that are having difficulty getting an exemption from AliExpress may consider using a different marketplace that does not charge sales tax. There are several other Chinese online marketplaces that can be used to source products for resale.
• Absorb the Sales Tax: Businesses can also choose to absorb the sales tax and not pass it on to their customers. This may be a viable option for businesses that have a low profit margin or that want to remain competitive in the marketplace.