The U.S. Sales Tax Guide for Netherlands-Based Businesses

The U.S. is one of the world’s largest consumer markets, with annual e-commerce sales surpassing $1 trillion. For Netherlands-based businesses, this scale offers unmatched opportunities to grow revenue and reach new customers. Strong demand for international products and a well-established digital infrastructure make the U.S. a highly attractive market for Dutch companies.

However, selling in the U.S. requires navigating a decentralized sales tax system that differs greatly from the Netherlands’ VAT framework. Each state sets its own rules, rates, and compliance requirements, making registration, collection, and ongoing compliance more complex. Understanding these requirements is essential for Netherlands businesses aiming to expand confidently into the U.S. market. Here’s a closer look at how U.S. sales tax works in practice.

Understanding U.S. Sales Tax

When Dutch businesses sell into the U.S., one of the first challenges is adapting to the American sales tax system. Unlike the EU VAT model, U.S. sales tax is decentralized, fragmented, and only applies at the point of final sale.

Key Differences from Dutch VAT/GST

Feature	U.S. Sales Tax	Dutch VAT/GST
Tax Authority	Set at the state and local levels, rules vary by jurisdiction	National tax with uniform rules across the Netherlands
Rates	Varies by state; 5 states have no sales tax (AK, DE, MT, NH, OR); typical range 5–10%	Standard rate 21%, reduced rate 9%; consistent nationwide
Taxable Event	Charged only at the final sale to end consumers; no input credit	Collected at every production and distribution stage, businesses can reclaim input VAT
Exemptions	No input tax credit; resale exemptions possible with proper documentation	Input VAT is reclaimable on business purchases, reducing overall tax liability

In short, U.S. sales tax requires a localized, point-of-sale approach rather than a centralized, value-added system.

Do Netherlands Sellers Pay U.S. Sales Tax?

Dutch businesses selling into the U.S. cannot assume exemption from local tax rules. Whether or not you must collect sales tax depends on nexus, the legal connection between your business and a U.S. state.

Nexus After the Wayfair Decision

In 2018, the U.S. Supreme Court ruling in South Dakota v. Wayfair removed the physical presence requirement. Since then, most states enforce economic nexus thresholds, meaning you must collect tax once sales or transactions in that state exceed set limits.

• Typical threshold: $100,000 in sales or 200 transactions annually.
• State variations: Rules differ by state; for example, Alaska’s threshold from January 1, 2025, will be $100,000 in sales during the current or previous year.

How Dutch Sellers Commonly Trigger Nexus

Several sales channels and business models create a nexus for Netherlands-based companies:

• E-commerce websites (Shopify, WooCommerce, custom stores): Direct sales to U.S. consumers count toward state thresholds.
• Amazon and other marketplaces: Marketplaces may collect on your behalf, but you remain responsible for compliance with direct sales.
• SaaS and digital services: Many states now tax digital products and subscriptions, often creating nexus for software providers.
• B2B transactions: Business-to-business sales may qualify for exemptions if you obtain proper resale or exemption certificates.

Economic Nexus and Sales Tax Rules for Netherlands Businesses

For Dutch companies selling into the U.S., the economic nexus is the most important sales tax concept to understand. It determines when your sales activity in a state is large enough to trigger the same tax obligations as a local seller. The 2018 Wayfair ruling gave states the power to tax out-of-state (including non-U.S.) sellers once they cross defined thresholds. These are typically:

• $100,000 in sales or 200 transactions in 12 months (common in many states).
• Higher thresholds in large states such as California and Texas ($500,000).

Crossing a state’s threshold creates a tax obligation, even without physical presence. At that point, Dutch businesses must register, collect, and remit sales tax in that state. Failure to comply can result in back taxes, interest, and penalties.

Tax Registration Requirements for Netherlands-Based Businesses in the U.S.

Tax registration requirements for Netherlands-based businesses in the U.S. involve navigating more than 45 state systems, each with unique procedures, documentation requirements, and timelines. While the process may seem complex, following a clear step-by-step approach simplifies compliance and allows you to collect sales tax legally.

Step 1: Determine Nexus States

The first step is to identify which U.S. states your Netherlands business has established a nexus in. Nexus is generally triggered when your sales or transaction volume exceeds a state’s economic threshold, or when you maintain inventory within the state. Knowing where nexus applies is essential before attempting to register or collect sales tax.

Step 2: Obtain a U.S. EIN

Next, Netherlands-based businesses must obtain a U.S. Employer Identification Number (EIN). This is required for all foreign entities before registering for sales tax. You can apply online through the IRS using Form SS-4. The EIN will be used consistently across all state registrations and filings.

Step 3: Register with State Tax Authorities

Once you know your nexus states and have your EIN, you must register with each state’s Department of Revenue. Registration can typically be completed online or via paper forms. You’ll need to provide your business details, including entity type, owners, NAICS code, and EIN. Note that some states, such as Maryland, may require a responsible party with a U.S. Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).

Step 4: Provide Required Documentation

During registration, states generally ask for additional documentation. This may include owner or officer names and addresses with IDs or passports, your Netherlands business address, anticipated sales, and any prior tax permits. Accurate information is critical to avoid delays or rejections.

Step 5: Pay Registration Fees

Some states charge a registration fee, typically ranging from $1 to $50. Payment is typically required at the time of registration and may vary by state.

Step 6: Receive Your Sales Tax Permit

After your application is approved, you will receive a state sales tax permit, which may include additional local permits. This permit authorizes you to collect sales tax in that jurisdiction. Keep copies of all registration documents and note your filing frequency to maintain compliance.

Collecting and Remitting U.S. Sales Tax

Once your Netherlands business is registered in a U.S. state, the next step is collecting sales tax on every taxable transaction. Unlike VAT in the Netherlands, U.S. sales tax is not included in product prices but added at checkout.

Aspect	U.S. Sales Tax (for Netherlands Businesses)	Netherlands VAT
When to Charge Tax	Added at checkout on every taxable sale. The rate depends on the buyer’s shipping address, including state and local taxes.	Included in the listed product prices. Standard rate 21%, reduced rate 9% on certain goods/services.
Collection Method	Handled via e-commerce platforms, integrated with automation tools. Marketplaces may collect on your behalf, but sellers remain responsible for compliance.	Self-assessed by the seller on each invoice issued. Input tax can be credited against VAT collected.
When to Remit	Must file and remit to each state where registered, according to state-specific schedules (usually monthly or quarterly). Payment is made via state portals, ACH, or credit card.	Remitted periodically (monthly, quarterly, or annually) to the Dutch Tax Authority. VAT returns include input tax deductions.
Key Software/Automation Tools	Tax automation: Commenda, TaxJar, Vertex. Accounting software can manage filings and remittances.	Accounting and bookkeeping software tracks VAT and automates returns.
Recoverability	Final point-of-sale tax. No input tax credit; resale exemptions apply in specific cases.	Input VAT is recoverable, allowing businesses to offset VAT paid on purchases against VAT collected on sales.
Bookkeeping Notes	Must segregate tax collected by the state and track it separately. Automation reduces errors.	VAT is recorded per invoice; input tax credit offsets output VAT in a centralized system.

Filing U.S. Sales Tax Returns from the Netherlands

For Netherlands-based businesses selling into the U.S., filing sales tax returns can be challenging due to multi-state rules, time zones, and documentation requirements. Do I need to register for U.S. sales tax as a Netherlands-based business becomes an important question once your sales exceed economic nexus thresholds. Filing obligations start immediately after registration, regardless of your physical location.

Filing Frequency Requirements

Each state sets filing frequency based on sales volume:

• Annual filing: Typically for businesses with less than $1,000 in annual tax liability.
• Quarterly filing: Standard for mid-volume sellers or new registrants.
• Monthly filing: For high-volume sellers, usually over $10,000 in annual tax.

States may adjust your frequency as sales grow, so regular monitoring is essential to avoid missed filings.

Common Filing Mistakes

Netherlands businesses often encounter cross-border challenges:

• Currency conversion errors: U.S. sales tax must be reported in dollars; consistent methods and documentation are key.
• Exemption certificate management: Missing or invalid certificates can trigger penalties.
• Multi-location reporting: Shipping to multiple addresses within a state may require detailed reporting by jurisdiction.
• Timing discrepancies: Deadlines differ across states and are affected by weekends, holidays, and time zone differences.

Documentation Requirements

Maintain comprehensive records for each state to stay compliant:

• Detailed sales reports by jurisdiction (taxable and exempt sales).
• Customer exemption certificates with validation and renewal tracking.
• Product taxability documentation as rules vary by state.
• Returns and refund tracking with proper adjustment procedures.

Filing Procedures and Deadlines

Most states require online filing via their portals:

• Deadlines: Typically, the 24th of the month following the reporting period, although some states have different deadlines.
• Extensions: Vary by state; some allow automatic extensions, others need prior approval.
• Payments: Electronic payments are usually required; methods differ by state.

U.S. Tax Compliance for SaaS Businesses from the Netherlands

U.S. tax compliance for Netherlands-based SaaS companies involves navigating complex and evolving digital services taxation. Unlike physical products, SaaS offerings face varying tax treatment across states, creating a patchwork of rules.

Digital Services Taxability

States treat SaaS differently: some tax subscriptions like software purchases, others exempt them, and some apply partial taxation depending on features or bundled services. Key factors include delivery method (cloud vs. downloadable), customer type (B2B vs. B2C), software functionality, and bundled professional services.

Special Considerations

SaaS businesses must manage subscription billing carefully, determine customer location for correct tax application, and maintain exemption certificates where applicable.

Implementation Strategies

Automation is crucial for multi-state compliance. Tax engines integrated with billing systems handle complex rules, rates, and digital service nuances while maintaining a smooth customer experience. Clear communication about tax charges remains essential.

Netherlands Sales Tax Nexus in the USA: What It Means

Nexus is the connection between your Netherlands business and a U.S. state that gives that state the right to impose sales tax duties. Netherlands sales tax nexus in the USA represents the legal connection that creates tax obligations for Dutch businesses selling in American markets. Understanding nexus concepts is fundamental for compliance planning and risk management.

The Netherlands sales tax nexus in the USA is the legal link that requires Dutch businesses selling in the U.S. to collect and remit sales tax. Understanding nexus is key to compliance and risk management.

Types of Nexus Affecting Netherlands Businesses

• Physical nexus: Offices, warehouses, or staff in a state.
• Economic nexus: Triggered by sales volume or transaction count, even without physical presence.
• Click-through nexus: Created through U.S. affiliates earning sales commissions.
• Marketplace nexus: Platforms like Amazon may collect tax, but compliance obligations remain.

How Commenda Helps Netherlands Businesses Stay Compliant

Commenda’s platform simplifies U.S. sales tax compliance for Netherlands-based businesses, addressing multi-state complexities and reducing administrative workload.

1. Automated Nexus Monitoring: The platform tracks sales across all U.S. states, alerts you when approaching economic nexus thresholds, and converts Euro-denominated sales to U.S. dollars for accurate calculations.
2. Streamlined Registration: Commenda handles the full state registration process, managing documentation, paperwork, and follow-ups to secure sales tax permits for foreign entities.
3. Intelligent Tax Calculation: Integrated with major e-commerce systems, Commenda applies correct tax rates by customer location and product type, including specialized handling for SaaS and digital services.
4. Automated Filing and Remittance: The platform automates filing and payment across states, ensuring deadlines are met and reducing errors from time zone differences.
5. Comprehensive Audit Support: Detailed transaction records and audit trails satisfy state authorities, and Commenda provides full support during audits.
6. Specialized Support and Integration: Dedicated guidance bridges Netherlands VAT and U.S. sales tax, while integrations with accounting and e-commerce systems minimize operational disruption.
7. Ongoing Compliance Management: Commenda monitors rate changes, rule updates, and compliance requirements, ensuring continuous adherence as your business expands into new states or product categories.

Commenda provides Netherlands-based businesses with a reliable, automated solution for U.S. sales tax compliance. Its combination of real-time monitoring, seamless filings, and expert support ensures accuracy and reduces administrative burden. With Commenda, expanding into the U.S. is efficient, compliant, and worry-free.

Conclusion

Expanding your Netherlands business into the U.S. offers tremendous growth opportunities, but success requires navigating the complex, multi-state U.S. sales tax system. Unlike the Netherlands’ unified VAT framework, U.S. sales tax rules vary by state, creating compliance challenges. Proactive preparation, understanding economic nexus thresholds, registering in the right states, and implementing automated tax collection make managing these obligations far more straightforward.

With the right systems and professional guidance, Netherlands businesses can confidently expand into the U.S. market while staying fully compliant. 

Book a free demo with Commenda today to see how our platform simplifies U.S. sales tax compliance, letting you focus on growing your American operations.

FAQs: U.S. Sales Tax for Netherlands Businesses

1. Do Netherlands sellers need to collect U.S. sales tax on digital products?

Yes, obligations vary by state; some states tax SaaS and digital downloads, while others exempt them, depending on the product type, delivery method, and customer location.

2. How is the U.S. sales tax different from the Netherlands’ VAT system?

U.S. sales tax applies only at the final sale, varies by state, and does not provide input credits; Netherlands VAT is national, applied at each stage, and is recoverable.

3. What triggers economic nexus for Netherlands businesses in the U.S.?

Exceeding state-specific sales or transaction thresholds (typically $100,000 or more than 200 transactions) triggers nexus in each state individually.

4. How can a Netherlands-based e-commerce business register for U.S. sales tax?

Register separately in each nexus state via state portals, providing business documentation and a U.S. EIN; professional services can simplify the process.

5. Are there any U.S. states where Netherlands sellers don’t have to collect sales tax?

Alaska, Delaware, Montana, New Hampshire, and Oregon have no statewide sales tax, but some local taxes and nexus rules may still apply.

6. What tools help Netherlands SaaS companies stay compliant with U.S. sales tax?

Platforms like Commenda, TaxJar, and Vertex automate tax calculation, multi-state filings, and nexus monitoring for SaaS businesses.

7. How often do Netherlands businesses need to file U.S. sales tax returns?

Filing frequency depends on state and sales volume: annual for low, quarterly for medium, and monthly for high-volume sellers.

8. What are the penalties for not complying with U.S. sales tax laws as a Netherlands-based seller?

Penalties include failure-to-register, late filing/payment fees, interest, and, in severe cases, potential personal liability; proactive compliance is critical.