California Tax Compliance for International Clients

Why do I need to comply with California taxes if my company is based outside the U.S.?

If your fulfillment center is located in California, your business is generally considered to have a physical presence (nexus) in the state. Under California law, this can create tax obligations regardless of where your company is incorporated or operated.

What types of taxes may apply?

Depending on your business activities and structure, this may include:

• California sales tax (registration, collection, and remittance on taxable sales), and
• California business taxes, such as state income tax or franchise tax.

Tax requirements vary, so not every business will owe every tax, but registration and filing obligations are common.

Does this apply to all international sellers?

In most cases, yes — if you store inventory or fulfill orders from California, tax compliance is required. This is a common situation for international companies using U.S.-based fulfillment centers.

Do I need to collect sales tax on all U.S. orders?

No. Sales tax is generally collected based on the customer’s shipping destination and the taxability of the product. California sales tax applies to taxable orders shipped to California customers.

Who is responsible for registering and filing taxes?

The seller of record is responsible for:

• Registering with the California Department of Tax and Fee Administration (CDTFA) for sales tax, and
• Filing any required California business tax returns with the appropriate state agencies.
• We recommend working with a US-based tax advisor or CPA