Nexus means managing complex regulatory sales tax and compliance requirements
Nexus takes two forms:
Physical nexus is leveraging tangible infrastructure within a jurisdiction to establish a market, such as having employees, inventory, or an office, store, or warehouse in a state. However, that changed on June 21, 2018, when the Supreme Court of the United States found the physical presence rule to be “unsound and incorrect.” Physical presence in a state still triggers nexus, but with the Supreme Court ruling in South Dakota v. Wayfair, Inc., nexus can also be established solely by economic activity in a state (economic nexus).
Economic nexus is a financial presence within a jurisdiction – generally void of any physical presence. i.e. revenue of $100K or more than 200 transactions in the prior 12 months will create nexus in a number of states.
Nebulous and Fragmented
There is no single regulatory body that determines nexus.
The definition of nexus broadened significantly with the Wayfair ruling in 2018, exposing businesses to economic thresholds that can trigger nexus in over 10k jurisdictions. To keep up to date with ever changing rules and regulations requires a dedicated resource.
Don't leave it to chance
It's too important
FAStek evaluates your activities to determine where you have nexus for sales tax purposes. These activities include, but are not limited to where you have offices, where you have employees, where you travel to meet with prospects or clients, where you perform services, and where you store inventory. It also includes reviewing the business’ sales activities in terms of the amount of sales into each state and the number of transactions or invoices in each state to determine an economic presence. We deliver our results and recommend action steps in each state.
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