Sales Tax Basics

Ecommerce businesses may need to collect sales tax in US states where they have 'economic nexus', meaning they exceed a revenue or transaction threshold in that state. Swap automates tax calculation, collection, and remittance across every region you sell in.

VAT (Value Added Tax) is used across the EU, UK, and many global markets, charged at each supply chain stage. GST (Goods and Services Tax) operates similarly in Australia, Canada, NZ, India, and Singapore. US sales tax is charged only at the point of sale and varies by state. When shipping cross-border, the tax type depends on the destination country. EU shipments trigger VAT (15-27%), Australia triggers 10% GST, and US shipments may trigger state sales tax. Swap's compliance engine automatically determines and applies the correct tax type and rate at checkout.

The U.S. doesn’t have a single nationwide “purchase tax.” Instead, most states (and sometimes cities/counties) charge sales tax on purchases, with rates and rules varying by jurisdiction.

Yes, the U.S. has sales tax—but it’s set at the state (and often local) level, not as one single national rate. Some states have no state sales tax.

There isn’t one U.S. tax rate on goods. For domestic purchases, sales tax varies by state and locality. For imports, you may also see duties and import taxes depending on the destination country’s rules.

If sales tax is added on top (common in the U.S.), you calculate: total price = item price × (1 + tax rate). Some regions display tax-inclusive pricing instead, where tax is already built into the shown price.

Those are import taxes and duties. Depending on the country, this can include VAT/GST (or similar import tax) and customs duties (tariffs) based on the product type, origin, and value.

They’re commonly referred to as customs duties (tariffs) and import taxes. Import duties apply when goods enter a country, and many countries also apply VAT/GST (or similar) on imports.

The average combined state and local sales tax rate in the US is approximately 7–8%, though this varies widely: states like Oregon, Montana, New Hampshire, Delaware, and Alaska have no state sales tax, while states like Louisiana, Tennessee, and Arkansas have combined rates exceeding 9%. Always apply the specific rate for the customer's shipping destination. There is no single U.S. sales tax rate—there are thousands. Rates can vary by state, county, city, special tax district, product category, and buyer location. Sales tax is usually added at checkout rather than included in the displayed price.

The U.S. doesn’t have one national sales tax rate. Sales tax is set by states and often local areas, so the rate depends on where the customer is located.

There isn’t one U.S. purchase tax rate. Sales tax varies by state and locality, and sometimes by product category. It’s usually added at checkout.