Here are some tips for handling sales tax and VAT compliance in dropshipping ¹ ²:

Ensure you have a sales tax exemption certificate, which may be called a resale certificate in your state.

Check each state’s tax policies, as some states require you to charge sales tax on the full retail price of the transaction while others require you to charge sales tax on the wholesale price.

If you have nexus in a state, you must register for sales there and collect and remit sales tax in all states where you are registered.

If you don't have nexus in a state, you usually don't have to charge and remit sales tax.

 If you are an EU VAT-registered business and your supplier is also in the EU, VAT on B2B purchases is managed through the reverse-charge mechanism.

If your business is located outside of the EU but your supplier is inside the EU, you probably don't have to pay VAT.