Global Sales Tax & VAT for
Dropshipping Businesses
We do your Sales Tax & VAT for you.
Yonda syncs with your store, protecting your online business by automatically
calculating, filing, and remitting Sales Tax & VAT.
What is Drop Shipping?
Drop shipping is an eCommerce model where businesses don’t stock inventory but rather purchase items from third-party suppliers who ship directly to customers.
This streamlines logistics, cuts overhead costs, and allows retailers to offer diverse products without hefty inventory investments.
How Does Sales Tax for Drop Shipping Work?
Drop shipping adds complexity to sales tax with three parties involved.
So how do you make sure items are only taxed once?
The end customer usually pays tax, while the drop shipper provides a resale or exemption certificate—but rules vary by state. Yonda’s experts guide you through state-specific regulations and automate your tax filing for hassle-free compliance.
Have a Drop Shipping Sales Tax Manager on Call
Receive full onboarding and registration support
Automate your filings and certificate management
We Integrate with Your Tech Stack
Yonda plugs into your existing tech-stack and automatically calculates, files, and remits your sales tax, VAT & GST. Track your tax filings and download reports in one easy to use platform.
Dropshipping Sales Tax Nexus
Drop shipping businesses may have sales tax nexus in one or more states. That means you’re physically or economically connected to the state and obligated to collect tax. Our team can help you understand the various factors that determine nexus for drop shipping operations.
We use innovative tech and human expertise to ensure you’re compliant with the relevant state tax regulations and minimize your exposure to potential tax liabilities.
Drop Ship Sales Tax Rules – State By State
Each state has its own set of regulations for drop shipping sales tax. Our experts are well-versed in the rules of each state. We can provide tailored guidance on compliance requirements and potential exemptions, whether you provide drop shipping as a supplier or use it as an eCommerce business.
How Dropshipping Works for Suppliers
As a drop shipping supplier, ensuring compliance with sales tax regulations is paramount to the success and reputation of your business.
We help you understand your sales tax obligations in the states where you have nexus. Our experts can register your business for sales tax permits in relevant jurisdictions and keep you informed about changes in state tax laws.
You’ll need to collect a valid and accurately completed exemption form or resale certificate from all your retailers. We can manage your certificates and identify potential problems.
Speak to a Global Dropshipping Tax expert today
We keep up with the latest requirements in each state so you don’t have to.
Our drop shipping sales tax service includes a dedicated sales tax manager, an automated filing system, and resale & exemption certificate management.
Contact us today to learn more about how we can help you achieve full tax compliance.
Schedule a call today
