For customers who do not have a business registered in the United States, Artisan Furniture US will not levy Use Tax or Sales Tax, as they fall outside the US’ tax jurisdiction.

For example, if a UK based customer places an order on the US website (artisanfurniture.us) and the product is shipped from one of the three American fulfilment centres in Cranberry (NJ) Fairview (NJ) or Perris (CA), we will not charge Use Tax/Sales Tax at any point.

Legal Framework:

The Supreme Court ruling in Wayfair v. South Dakota established that an economic nexus for tax purposes applies to businesses based on their presence or economic activity within a state. This ruling impacts only US-based businesses and does not extend to businesses operating entirely outside the United States. Therefore, overseas businesses, such as those based in the UK or other countries, are exempt from these requirements when dealing with Artisan Furniture.

Important Considerations:

1. Tax Jurisdiction: Artisan Furniture operates under the jurisdiction of US tax laws, which do not extend to international customers without a US-registered business.
2. Economic Nexus: The concept of economic nexus, as clarified in Wayfair v. South Dakota, affects businesses based on their economic activities within specific states. However, this does not impact non-US businesses purchasing from Artisan Furniture,

Key Points on Economic Nexus:

1. Economic Nexus Thresholds: Economic nexus is typically triggered when a business exceeds a specific sales or transaction threshold within a state. For most states, this threshold is $100,000 in sales or 200 transactions within a 12-month period. However, there are variations, such as California, where the threshold is $500,000 in sales.
2. State-Specific Regulations: Each state in the US has its own set of rules regarding sales tax and economic nexus. Some states like Alaska, Oregon, Montana, New Hampshire, and Delaware (known as the NOMAD states) do not impose a statewide sales tax, although local jurisdictions within these states might have specific tax requirements.
3. Registration and Compliance: Once a business meets the economic nexus threshold in a state, it must register with the state’s tax agency to collect and remit sales tax. This process varies by state, with some requiring registration within a few months of reaching the threshold and others having different timelines.
4. International Transactions: For non-US businesses purchasing products from Artisan Furniture, the concept of economic nexus and associated tax obligations do not apply. These transactions are considered outside the scope of US tax jurisdiction, thus exempting such international customers from Use Tax or Sales Tax.

Conclusion:

For international customers without a US-registered business, Artisan Furniture ensures that no Use Tax or Sales Tax is applied, aligning with US tax regulations that exclude non-domestic transactions from such obligations. This policy simplifies the purchasing process for overseas customers, allowing them to enjoy tax-free transactions when ordering from the US website and receiving products shipped from US-based fulfillment centers.