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AliExpress Now Required to Collect Sales Tax in Many US States

Impact on Dropshippers

Dropshippers may face increased costs due to sales tax collection mandate.

AliExpress, a popular online retailer, is now required to collect sales tax from American consumers who make purchases on its platform in many US states. This is a significant change that will impact dropshippers who use AliExpress to source their products.

Previously, dropshippers were not responsible for collecting sales tax on purchases made from AliExpress because the retailer was considered to be located overseas. However, with the new sales tax collection mandate, AliExpress is now required to collect and remit sales tax to the appropriate state tax authorities.

This change will likely result in increased costs for dropshippers, as they will now be responsible for paying sales tax on all of their purchases from AliExpress. In addition, dropshippers may also need to register with each state they sell in and file sales tax returns.

It is important to note that the sales tax rate will vary depending on the state in which the purchase is made. For example, the sales tax rate in California is 7.25%, while the sales tax rate in New York is 8.875%.

Dropshippers who use AliExpress should be aware of this new sales tax collection mandate and should take steps to comply with the new requirements.

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