What is Sales Tax Nexus?
Sales Tax Nexus is also called “sufficient physical presence” and is a legal term that refers to the requirement for companies doing business in a state to collect and pay tax on sales in that state. For example, if you sell goods or services in Louisiana, you must file and pay Louisiana state taxes.
Determining nexus can be hard for sellers, especially with states having different definitions for a “sufficient physical presence.” Furthermore, the rules are constantly changing, with many states introducing new laws or thresholds for sales that would require sellers to collect and remit sales tax based on business activities in a specific state.
To help you understand top considerations for Sales Tax Nexus, our friends at Avalara have created a quick guide on Sales Tax Nexus: Everything you wanted to know (but were afraid to ask).
Who should download and read the Sales Tax Nexus: Everything you want to know?
Do you run an online B2C or B2B eCommerce store? Are you unsure if you should or should not be collecting sales tax across all states and don’t know where to even start? Planning a marketing event in a new state and are unsure of sales tax implications?
If you find your B2C or B2C eCommerce business asking, “Where must we collect, remit and report?”, this Sales Tax Nexus quick guide provides an excellent starting point. This 3-page PDF is quick read that highlights the top 5 things to consider with Sales Tax Nexus.
What will I learn if I download and read the Sales Tax Nexus: Everything you want to know?
Everything you want to know about nexus provides an overview of the various sales activities that can trigger nexus and how different states treat the issue, including:
- Physical presence
- Delivery and Distribution
- Employee location
- Event attendance
- Advertising and affiliates
In addition, you will learn a little about both Trailing nexus and Growing out of nexus.
How can I download the Sales Tax Nexus: Everything you want to know?
While the online economy has created a multitude of opportunities for businesses, selling goods to customers in many different states can make sales taxes complicated and confusing. This quick guide helps cut through some of the confusion and will get you moving into the right direction and asking the right questions. For more Sales Tax reading, please visit our post on Online Sales Tax Showdown or 2017 Sales Tax Changes.