Another taxation question… I have been looking into Strip Atlas to make life simpler selling into the USA. A couple of people have warned me about the difficulties complying with sales tax requirements so I have been doing some research.
Sales tax seems like an impossibly complex subject. How do software companies in the USA deal with this? It seems that some states e.g. Texas consider simply licensing software for use in the state as creating nexus, so it appears that a software business (even if you only exist as a Stripe Atlas corporation in Delaware) needs to register in multiple states for sales tax. Then you need to track any changes i.e. other states that go down the same path as Texas.
Then there is the issue of other activities that might create nexus e.g. exhibiting at a trade show.
Is this just part of doing business in the USA - keeping abreast of nexus rules and changes in every state?
(The rules regarding sales tax actually don’t seem to make a distinction between out of state and other countries, so in theory the same issues seem to exist for a non-US company. However, I guess there are practical difficulties in enforcing tax collection from a company without a connection to the USA. Some people say that is coming via international tax treaties…)