The latest on exporting to the USA

As an advocate of Scottish exports, I am conscious of the challenges faced by small businesses when keeping up to date with international trading - especially the USA, which is our single biggest country destination.

I wanted to get the lowdown on what is actually required in light of recent changes so I went straight to the source.  During a recent visit to the AVASK USA offices in New York I met with Niani Cartwright and put together these key points

🛒 Ecommerce is a great export tool because it often removes the need for physical presence in the USA.

📦 When using ecommerce marketplaces (e.g. Amazon, Etsy) or ecommerce platforms (e.g. Shopify,WooCommerce), much of the admin, pricing, currency conversion, shipping and customs documentation is supported through on-site systems. Some marketplaces also offer warehousing and fulfilment services within the USA.

💵There are two main taxes to understand.

Federal tax is broadly comparable to UK income or corporation tax but often won’t apply to small Scottish-based businesses due to the UK-US tax treaty.

Sales tax is broadly equivalent to UK VAT with some exceptions.
∙ Tax rates vary from state to state
∙ Tax is added at checkout rather than included in the display price.

The approach to sales tax depends on the route taken.
∙ When selling on marketplaces, sales tax is collected by the marketplace on behalf of the seller.
∙ When selling on ecommerce platforms, sellers will generally only need to collect sales tax once they exceed individual state thresholds in a calendar year (often at least $100k per state)

😬 As a result, most small Scottish businesses selling remotely into the USA are unlikely to have direct US tax responsibilities.

💰 Liability for tax usually arises only if the UK seller triggers a physical or economic presence (nexus) in the USA. This includes;
∙ Employing staff
∙ Holding stock
∙ Opening premises
∙ Exceeding sales thresholds in individual states (as per above).

✍️In these cases an Employer Identification Number (EIN) may be required.  Despite its name, the purpose of an EIN is to identify a taxpayer similar to UTR and VAT numbers in the UK.

📝 For many small Scottish based businesses the only US tax form they may encounter is W-8BEN-E which is a straightforward declaration confirming their non-US status.

🚢. Following removal of the $800 duty-free threshold in August 2025, duty is now payable on most imports regardless of value.  Many couriers offer a Delivered Duty Paid (DDP) service which can be used to maintain smooth delivery to your customers even if you have to adjust your pricing accordingly.

Hope this helps!