Nexus is the qualifying criteria for a seller to be required to collect and pay taxes on sales in a state. Sales tax nexus establishes the connection between a taxing jurisdiction, such as a state, and an establishment, such as your business. However, there isn’t necessarily a shared definition of nexus across the 50 states, and the rules can change (sometimes often). Read more here:
There isn’t necessarily a shared definition of nexus across the 50 states, and the rules can change (sometimes often). Consequently, a business must look at each state individually when determining sales tax nexus and must be attentive to the continuously changing regulations. Find more information by utilizing our free state-by-state nexus risk calculator.
South Dakota v. Wayfair, Inc. is a 2018 US Supreme Court decision that gives states the right to force out-of-state sellers to collect and remit sales tax, even if they do not have a physical presence in the taxing state.
Not at all. Physical nexus is the law of the land in every state. If you’re operating in the state, you’re going to have to register, collect, and remit sales tax there.
As with economic nexus, the qualifying criteria for physical nexus vary by state.
You only have to worry about sales tax and register in a state to do so if you have triggered nexus in that state. There are two types of nexus: physical nexus and economic nexus. Before you have triggered nexus, you are not required to be registered in a state, and you do not need to worry about collecting or remitting sales tax on sales made in that state.
Refer to the above “What is nexus?” for more information on what nexus is and whether you have it.
It depends. If you are purchasing your product at wholesale with the intention of reselling the product, you will need to provide an exemption certificate to the supplier in order to be exempt from the sales tax. It is then your responsibility to collect sales tax from your customers when selling that product. Find our resale certificate chart here.
If you do have nexus in a state, you will be required to register with that state. Once you register, you will be issued a filing frequency (monthly, quarterly, or annually) when you are issued your sales tax permit. Therefore, the state expects to hear from you on that due date, even if it is as a “zero return” file.
Many businesses make the false assumption that if their services do not coincide with goods sold, then these services are not taxable. That simply is not true and can be a costly assumption. Here are some things to consider when determining the taxability of your services.
In short, yes.
States audit companies of all sizes. Even super small businesses that only sell in one state could have big problems if they aren’t aware of their business’s tax consequences and are audited.
A marketplace facilitator law is a law that requires any given online marketplace facilitator platform to collect and remit sales tax for the online sellers who use their platform to make sales. These platforms enable sales by listing products and taking payments. They also collect receipts and may assist in shipment. Some examples include eBay, Etsy, and Amazon.
We try to keep our pricing as transparent as possible, and for many of our services, we do have at least a baseline set cost that we are happy to share. With our services, the scope of the same project in different situations can vary greatly. If you can’t find the answers you’re looking for on our pricing page, feel free to reach out to us at info@sales.tax.
