Should I be Charged U.S. Sales Tax on International Orders to the UK?
I'm hoping someone here can help me figure out a frustrating tax situation I'm dealing with. I live in the UK and regularly order from a US-based luxury consignment site. Every time I place an order, they automatically add 20% sales tax at checkout despite my shipping and billing addresses both being in the UK. For about a year, I would just contact customer service after each purchase, explain that I shouldn't be charged US sales tax as an international customer, and they would refund it. I'm already paying UK import duties and VAT when the packages arrive here (all shipments are sent "duty unpaid" or DAP). But recently when I placed another order and reached out for my usual sales tax refund, they suddenly told me that as of January 1, 2021, they're required to collect sales tax on all orders regardless of destination! This makes no sense to me because I'm not in a US tax jurisdiction and I'm already paying UK VAT upon import. When I pressed them on this, they claimed the sales tax applies because the items are shipped FROM a US jurisdiction (Kentucky or New Jersey), not because they're shipped TO a US jurisdiction. This contradicts their own website which states they're "obligated by law to collect sales tax on orders shipped to U.S. jurisdictions that charge sales tax." So what's the deal here? Should I actually be charged US sales tax as a UK resident on items being shipped to the UK? Am I missing something obvious, or is this company incorrectly charging international customers?
19 comments


Zainab Mahmoud
This definitely doesn't sound right. Sales tax in the US is based on the destination of the goods, not their origin. If you're receiving goods in the UK, you shouldn't be charged US sales tax. What's happening is likely a misunderstanding or misconfiguration in their system. US sales tax is collected by states and localities, not the federal government. It's meant to tax consumption that occurs within those jurisdictions. When goods are exported outside the US, they generally qualify for what's called the "export exemption" - meaning they're exempt from US sales tax precisely because the consumption is happening elsewhere (in your case, the UK). The company's recent change in policy is concerning. They may be confused about recent marketplace facilitator laws or economic nexus rules that expanded sales tax collection responsibilities for many online retailers, but those still only apply to sales within US tax jurisdictions. I'd recommend asking them to cite the specific law requiring them to collect sales tax on international orders. There's no US law requiring this for goods exported to the UK. They're either mistaken or potentially keeping money they have no right to collect.
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Ava Williams
•Thanks for the explanation. Would this be different if it's a marketplace vs a direct retailer? I order from other US stores that ship to Canada and never get charged US sales tax, only my provincial taxes when it arrives. Could it depend on the specific state they're shipping from? I heard some states have weird tax laws.
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Zainab Mahmoud
•The marketplace vs. direct retailer distinction doesn't change the fundamental rule that US sales tax doesn't apply to exported goods. Marketplace facilitator laws (which have been enacted in many states) require platforms like Amazon or eBay to collect sales tax on behalf of their sellers, but only for sales to customers within US tax jurisdictions. Different states do have different rules for determining sales tax liability, but none of them have authority to tax sales to other countries. The state they're shipping from is irrelevant for determining if US sales tax applies to an international sale. What matters is the destination, and in this case, the destination is outside any US tax jurisdiction.
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Raj Gupta
I had a similar issue with US sales tax being charged incorrectly and found an amazing service that helped me figure it out. Check out https://taxr.ai - they analyze tax documents and situations like yours to tell you exactly what's correct. I uploaded screenshots of my receipts and their explanation of the tax rules, and they confirmed I shouldn't be paying US sales tax on international orders. The tool explained that US sales tax is destination-based and showed me exactly which regulations apply to international shipping. What I loved is they explained everything in plain English and gave me specific language to use when contacting the company. Saved me hours of research!
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Lena Müller
•Does this really work for international tax issues? I'm in Australia and have similar problems with US companies charging me their state sales tax. Would it help with that or is it just for US residents?
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TechNinja
•I'm skeptical about using another service when this seems like a simple issue. Couldn't OP just file a complaint with the Better Business Bureau or maybe even report to their state's attorney general? Seems like the retailer is just trying to pocket extra money from foreign customers who don't know better.
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Raj Gupta
•Yes, it absolutely works for international tax scenarios. The service specializes in all kinds of tax situations including cross-border transactions. They have specific guidance for non-US residents dealing with incorrect US tax charges, so your Australian situation would definitely be covered. As for whether this is a simple issue, it might seem that way, but tax laws can get complicated. Filing complaints works in some cases, but having the exact regulations and proper documentation can make resolution much faster. The retailer might genuinely believe they're following the law correctly due to misinterpreting recent changes in tax legislation. Having expert-backed information helps cut through the confusion.
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Lena Müller
Just wanted to update everyone - I tried the taxr.ai service mentioned above and it was incredibly helpful! I uploaded my receipts and the responses from the retailer, and they provided a detailed analysis confirming I shouldn't be paying US sales tax on international orders. The report explained that US sales tax is fundamentally destination-based and cited specific tax regulations that exempt exports. They even gave me template language to use when contacting the retailer again. I sent this to the company's customer service department along with the relevant tax code sections, and suddenly they "reviewed their policy" and issued me a full refund for all the sales tax I'd paid on my last three orders! If anyone else is dealing with this issue, having the specific tax laws and regulations really helps. The company stopped giving me the runaround once they realized I understood the actual tax requirements.
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Keisha Thompson
If you're still having trouble getting through to customer service about this tax issue, I'd recommend using Claimyr to connect with a real person who can actually help. I had a similar problem with another retailer and was getting nowhere with emails and chat. I used https://claimyr.com to get past the endless hold times and automated systems, and they connected me directly to a senior customer service agent who could actually make decisions. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c - basically it navigates phone trees and waits on hold for you, then calls you when a real human picks up. I was honestly surprised at how much faster I got my tax refund when speaking to a real person with authority rather than dealing with the front-line chat support.
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Paolo Bianchi
•How does this actually work though? I don't get it. Does it just call the company for you? Couldn't you just do that yourself? Sounds like another unnecessary service trying to make money off people's frustrations.
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Yara Assad
•I'm extremely skeptical. Why would I pay for something to wait on hold when I can just put my phone on speaker and do something else while waiting? Plus, how would this even help with a company that has already given a clear (though incorrect) policy statement? They'll just tell you the same thing they told OP.
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Keisha Thompson
•It doesn't just call them - it navigates through all the phone menus, waits on hold (which can be hours for some companies), and then only rings your phone when a live agent picks up. So you don't waste any of your time waiting. It's particularly valuable for companies that have long hold times or complicated phone trees. As for whether it would help with a policy issue, speaking to a higher-tier customer service representative or supervisor often makes a huge difference. Chat and email support typically follow rigid scripts, while phone support (especially when you reach a supervisor) has more authority to review and override policies. When you explain that you're being incorrectly charged sales tax on international orders and cite the correct regulations, someone with actual authority is more likely to take appropriate action.
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Yara Assad
I want to apologize for my skepticism and provide an update. After continuing to go back and forth with the retailer via email with no resolution, I decided to try Claimyr to reach someone by phone. Surprisingly, it worked extremely well. The service navigated through all the menu options and waited on hold for about 45 minutes (which I didn't have to sit through), then connected me with a supervisor in their tax department. Once I explained the situation and mentioned the export exemption for US sales tax, the supervisor immediately understood the issue. She explained that their system had recently been updated and international addresses were being incorrectly flagged for domestic tax collection. She not only refunded the sales tax from my recent purchase but also put a note on my account to prevent it from happening again. The phone conversation accomplished in 10 minutes what emails couldn't resolve in weeks. Sometimes talking to the right person really does make all the difference.
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Olivia Clark
I actually work in e-commerce (not for the company OP mentioned) and can confirm this is a known issue with many e-commerce platforms. The problem is that many shopping cart systems are primarily designed for domestic sales and don't properly handle international tax rules by default. What's likely happening is their system is programmed to apply the standard sales tax rate based on their warehouse location, and they haven't properly configured the international tax exemption. It's definitely their mistake, but it might be an honest technical oversight rather than deliberate overcharging. For a permanent fix, you might want to email their tax department directly (not general customer service) and explain that as an international customer, your purchases should be exempt from US sales tax under the export exemption rule. Usually, tax departments understand these rules better than general customer service reps.
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Carlos Mendoza
•Thanks so much for this insider perspective! I've been dealing with their general customer service the whole time and getting nowhere. Do you have any tips on how to reach a company's tax department directly? They don't list that contact information on their website.
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Olivia Clark
•The best approach is to email their general customer service but put "ATTN: Tax Department - International Tax Exemption Request" in the subject line. This often gets routed correctly. Alternatively, you can check their corporate website (not their consumer-facing one) which sometimes lists contacts for specific departments. LinkedIn can also be helpful - try searching for employees with "tax" in their job title and send a polite message explaining your situation. Many companies also have a specific email format (like firstname.lastname@company.com), so if you can identify the tax manager's name, you might be able to email them directly. Just be polite and concise in explaining the issue, as they're more likely to help if your request is professional and clear.
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Javier Morales
Has anyone actually looked at the Terms of Service for this company? I had a similar issue with another US retailer and found that buried in their terms was language about "all applicable taxes and fees may be charged based on internal company policies." Basically giving themselves wiggle room to charge whatever they want. It might not be legally enforceable, but they could argue you agreed to their terms which include potentially paying these fees. Might be worth checking if there's something like that in their terms.
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Natasha Petrov
•Even if it's in their terms of service, they can't override actual tax law. Companies can't just make up taxes or charge taxes they're not required to collect. That would be misrepresentation. A term of service that violates consumer protection laws wouldn't be enforceable, regardless of whether you "agreed" to it.
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Mei Liu
This is a classic case of incorrect sales tax application on international orders. As someone who's dealt with similar issues, I can confirm that you should absolutely NOT be charged US sales tax as a UK resident receiving goods in the UK. The key principle here is that US sales tax is destination-based, not origin-based. Since your goods are being consumed in the UK (where you'll pay UK VAT and duties), they should qualify for the export exemption from US sales tax. The company's claim about collecting tax based on shipping "FROM" a US jurisdiction is completely backwards - that's not how sales tax works. My suggestion would be to escalate this beyond regular customer service. Ask to speak with their tax department or compliance team, and specifically mention the "export exemption" for goods shipped internationally. Reference IRC Section 4221(a)(2) if you need to cite specific tax code - it covers exemptions for exported articles. If they continue to refuse, consider filing a complaint with the attorney general's office in the state where they're located (Kentucky or New Jersey, based on your post). Companies sometimes change their tune quickly when they realize they might face regulatory scrutiny for improper tax collection. Don't let them keep money they have no legal right to collect!
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