Emerging State Tax Challenges for Remote Businesses Selling into the US: Nexus and Compliance Risks

• States are expanding and testing the limits of tax nexus for remote businesses, focusing on factors like inventory location, digital presence, remote workforces, and platform-based models.
• Bright-line nexus thresholds are increasingly seen as minimum requirements, with states using digital footprints and marketplace activities as new triggers for tax obligations.
• The presence of inventory in a state, even if managed by a third-party facilitator, can create sales tax nexus in many states, but rules vary and are not uniform.
• Some states, like Oklahoma, do not consider inventory stored by a third party as creating nexus if the seller has no control over the location and sales are below economic thresholds.
• Businesses must regularly review state-specific guidance to assess their tax obligations and avoid unexpected assessments and multistate exposure.

Source: bdo.global

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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