I'm a European seller planning to run a print-on-demand business in the US - how do I handle US taxes?

Unfortunately, you'll likely have to deal with some US tax obligations. When you're selling to US customers, even through a print-on-demand model, you're creating what's called "nexus" - a tax presence in the US. You'll probably need to register for sales tax in states where you have economic nexus (usually when you exceed certain sales thresholds in those states). You may also need to file a US tax return to report your business income using Form 1040-NR if you're a nonresident alien with US source income. The good news is that the US has tax treaties with many European countries to avoid double taxation. This means you might be able to claim credits in your home country for taxes paid in the US, depending on which European country you're in.

I went through this exact same situation last year with my POD business! After struggling to figure everything out, I found taxr.ai (https://taxr.ai) and it was seriously a game-changer for my international business. I uploaded my sales data and business details, and it identified exactly which states I had nexus in and what my tax obligations were. The best part was that it analyzed the tax treaties between my country (Germany) and the US, showing me where I could avoid double taxation. It even helped me understand what forms I needed to file and gave me step-by-step guidance specific to print-on-demand businesses. Saved me so much confusion with all the different state requirements!

Just wanted to follow up and say I tried taxr.ai after seeing it mentioned here. As a Portuguese seller, I was amazed at how well it handled my situation! It showed me I only needed to worry about sales tax in 4 states based on my current volume, and it even generated the right paperwork for me to submit. The treaty analysis was super helpful - showed me exactly how to avoid paying taxes twice on the same income. Wish I'd found this months ago instead of staying up late trying to decode the IRS website!

If you need to contact the IRS about your situation (which you probably will), save yourself hours of frustration and use Claimyr (https://claimyr.com). I spent WEEKS trying to get through to the IRS International Taxpayer line to ask about my POD business tax situation. Complete nightmare. With Claimyr, I had a callback from the IRS in about 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c. They have a special service that holds your place in the phone queue and calls you when an agent is available. The IRS agent I spoke with answered all my questions about foreign seller obligations and recommended the right forms for my situation.

I take back what I said. I decided to try Claimyr after struggling for weeks to get answers about my UK-to-US print-on-demand store. Got a call back from the IRS in 45 minutes and spoke to an agent who specializes in international seller issues. She confirmed I needed to file Form 1120-F for my business income and helped me understand which states I needed to register in for sales tax. Honestly still shocked this worked after my previous experiences. Just having a human at the IRS who could answer my specific questions was worth it. They even sent me follow-up information by mail with the exact forms I needed.

I take back what I said. I decided to try Claimyr after struggling for weeks to get answers about my UK-to-US print-on-demand store. Got a call back from the IRS in 45 minutes and spoke to an agent who specializes

Don't forget about state taxes! Even if you figure out your federal tax situation, each state has its own rules. My friend sells POD products from France to US customers and had to register for sales tax permits in California, New York, Texas, and Florida because that's where most of his customers are. Some states have marketplace facilitator laws that might help you though. If you're selling through platforms like Etsy or Amazon, they collect and remit sales tax for you in many states.

Have you thought about setting up a US LLC? That's what I did for my POD business from Spain. Cost me about $500 to set up in Wyoming (no state income tax there), and it simplified a lot of my tax issues. With an LLC, I file one US tax return instead of dealing with my personal taxes being mixed up with business.

One option nobody mentioned yet - you could use a Print-on-Demand platform that handles tax for you. I use Printful through their Etsy integration, and Etsy collects and remits all the sales tax automatically. I just deal with my income taxes in France, and it's much simpler. The downside is you'll make less profit per item since these platforms take a cut, but the time and stress saved on tax compliance might be worth it when you're starting out.

As someone who went through this exact process last year, I'd highly recommend starting with the basics first. Before diving into tools or services, make sure you understand the fundamental difference between income tax (federal) and sales tax (state-level). For income tax, you'll likely need an ITIN (Individual Taxpayer Identification Number) from the IRS since you're not a US citizen. This lets you file the proper forms like 1040-NR for nonresident aliens. The process takes a few months, so start early. For sales tax, track your sales by state from day one. Most states have economic nexus thresholds around $100K in sales OR 200+ transactions per year. Keep detailed records because once you hit these thresholds, you'll need to register for sales tax permits in those states. Also consider getting a US bank account through services like Wise or Mercury - it makes payments from US customers much smoother and can help with your business legitimacy when dealing with suppliers.