Activities that can establish sales tax nexus in a state
There are several ways a business can establish sales tax nexus, or an obligation to collect Sales tax, including:
- Economic activity in a state (economic nexus)
- Physical presence in a state (physical nexus)
- Referrals from businesses or individuals in the state (click-through nexus)
- Ties to affiliates in a state (affiliate nexus)
Economic nexus is established when an out-of-state company’s sales into a state exceed the state’s economic nexus threshold. It’s a simple enough concept that’s complicated by the fact that no two thresholds are exactly alike.
Any business that meets or exceeds a Read More