US Tax Filing for E-Commerce Sellers Abroad
Running an e-commerce store — whether on Amazon, Shopify, Etsy, or your own platform — while living abroad creates specific tax challenges: inventory cost of goods tracking, platform fee deductions, multi-currency sales, self-employment tax, and FBAR for foreign payment accounts. Whether you're drop-shipping from Asia or running a Shopify brand from Europe, we handle the complete e-commerce seller tax picture.
Start your returnWho this is for
What this filing may involve
Every situation is different. The forms below commonly apply — your specific filing may vary.
Documents usually needed
How Nomadic.Tax works
AI-assisted preparation with licensed professional review — every time.
When human review matters
Independent research and educational guidance from the Nomadic Tax Institute.
Relevant plans
Choose the package that best fits your situation, or view all plans.
- ✓Everything in Standard
- ✓Schedule C & SE for self-employment
- ✓Multiple income sources and currencies
- ✓Everything in Premier
- ✓Foreign Earned Income Exclusion (Form 2555)
- ✓Foreign Tax Credit (Form 1116)
- ✓FBAR filing (FinCEN 114) included
Frequently asked questions about US Tax Filing for E-Commerce Sellers Abroad
Can I claim FEIE on e-commerce income?
Potentially yes. E-commerce income is considered earned income if you actively operate the business. If you're actively managing the store while living abroad, FEIE may apply. Purely passive income from a business would not qualify. The key test is whether the income is earned through your personal services.
How do I handle inventory for tax purposes?
Inventory is accounted for through Cost of Goods Sold (COGS) on Schedule C. COGS reduces your gross profit, which is the basis for both income tax and self-employment tax. We work with your inventory management records to ensure COGS is accurately calculated.
Do I owe sales tax for US customers?
US sales tax (or use tax) for online sellers is a separate matter from income tax. Under the South Dakota v. Wayfair ruling, states can require out-of-state sellers with economic nexus to collect sales tax. This is separate from your income tax filing obligations.
Who is this for?
Browse by your situation for tailored guidance and the right package.
