- Businesses must collect out-of-state sales tax if they have nexus in a state.
- Nexus can be physical, economic, click-through, or marketplace-based.
- The 2018 Wayfair decision allows states to require tax collection based on economic activity.
- Marketplace platforms like Amazon or Etsy often handle tax collection.
- Sales tax laws vary by state, including rates and thresholds.
- Sellers must collect, remit, and file sales tax returns if they meet nexus thresholds.
- Economic nexus is based on sales volume or transaction count.
- Physical presence includes offices, warehouses, or employees in a state.
- Click-through nexus involves using in-state affiliates or referral links.
- Marketplace nexus requires facilitators to collect tax on behalf of sellers.
Source: taxually.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.
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