Nexus refers to the connection or presence that a business has in a particular state that gives that state the authority to require the business to collect and remit sales tax on its taxable sales in that state. In the context of U.S. sales tax, nexus is established when a business has a physical presence in a state (physical nexus), such as a store, warehouse, or employees, or when it engages in certain types of economic activity in that state (economic nexus).
- If a business has no nexus in a particular state, then that state cannot require the business to charge sales tax.
- Sales threshold
- Reference period
- Transactions made through a registered marketplace facilitator excluded
- Transactions made to a reseller excluded
- Limited to certain transaction type
Source: Fonoa
Click on the logo to visit the website
Latest Posts in "United States"
- California OTA Upholds Sales Tax Fraud Assessment and 40% Penalty
- Alabama Exempts Credit Card Processing Fees from Sales Tax
- Illinois Tax Rules on Goodwill Auto Repairs by Dealers for Manufacturers
- Maryland Cash Transaction Rounding Authorization Bill
- Kansas Introduces Sales Tax Exemption for Certain Disabled Veterans
