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Sales Tax Audit Checklist for European Companies Expanding into the U.S.

Four people in business-casual attire are an office space, which has big sunny windows. The woman seated closest to the camera is referencing and reaching for a computer in front of her. She is smiling with the three people, slightly out of focus behind her, who are all taking a look at the work in front of her.

Entering the U.S. market brings exciting opportunities—but also complex sales tax obligations. Unlike VAT in Europe, U.S. sales tax is state-driven, meaning rules, rates, and filing requirements vary across more than 12,000 jurisdictions. Our Sales Tax Audit Checklist is designed specifically for European businesses to help you navigate this complexity, minimize audit risk, and avoid costly penalties.

Why U.S. Sales Tax Is So Complex

  • No Federal Sales Tax: Each state sets its own rules, rates, and exemptions.
  • 12,000+ Jurisdictions: Local city and county taxes add layers of complexity.
  • Economic Nexus Laws: Remote sellers may owe tax even without a physical presence.
  • Frequent Rule Changes: States update thresholds, exemptions, and filing requirements regularly.
  • Documentation Burden: Exemption certificates and record retention are critical for audit defense.
Sales Tax Audit Checklist: How to Stay Compliant

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Kiran Padam

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Kiran Padam manages Vertex’s public relations and content for the UK and Europe. Kiran has over a decade of experience in copywriting, public and media relations, increasing brand-awareness, and company share-of-voice.