When expanding operations into the U.S. market, business owners must learn about the federal, state and local tax systems they will encounter. Sales tax in the U.S. is quite different from a value-added tax (VAT) or a goods and services tax (GST) assessed by many other countries. Companies selling goods and some services must comply with a sales tax system that can vary across thousands of taxing jurisdictions. The U.S. federal tax system can also be challenging for companies new to this country.  Companies and their tax advisors are currently busy working towards the March and April deadlines for filing tax returns, applications for additional extensions of time to file returns, and reporting income tax withholding.

Brooks Nelson, Partner and Strategic Tax Leader, and Sarah McGregor, Tax Director, talk with Lauren Stinson, Sales and Use Tax Leader, and Brian Dill, International Tax Leader, about the tax reporting complexities that international companies encounter when carrying on business in the U.S.

Listen to learn more about: 

• 03:54 – GST tax vs. U.S. sales tax
• 05:24 – Compliance differences
• 06:43 – Nexus 
• 12:02 – Preparing for March 15 deadline
• 14:54 – Important foreign subsidiary owner discussions
• 17:14 – Outsource solutions 

 Related Guidance

• Article: Tax Insights for Indian Companies in the U.S. Market
• Article: Beneficial Owner Information Reporting Final Rule for FinCEN Entity Identifiers
• Article: ASU 2023-09: FASB’s New Income Tax Disclosures for Private Entities
• Article: ASU 2023-09: New FASB Rule Enhances Income Tax Disclosures for Public Companies
• Podcast: Accounting Standards Update 2023-09: New Income Tax Disclosure Rules