- Nexus is a key concept in sales tax compliance for businesses without physical presence in a state
- Nexus can be established through economic activity, such as reaching a certain threshold of sales or transactions
- Each state defines its own nexus criteria, making it important for businesses to stay informed and compliant with tax laws
- Economic nexus thresholds vary by state, with some states requiring sales tax collection after reaching a certain sales revenue amount or number of transactions
- Businesses must register, collect, and remit sales tax in a state once they surpass the economic nexus threshold
- It is crucial for businesses to stay aware of evolving sales tax laws in each state to ensure compliance with tax obligations.
Source: trykintsugi.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
