Sales Tax Nexus Determination

Sales tax nexus represents a physical connection between an out-of-state company and a particular taxing jurisdiction that allows the taxing jurisdiction to subject the out-of-state company to their taxing rules. 

Having a physical office or an employee based in a particular state is a clear-cut example. However, there are more subtle activities that could also trigger nexus that could represent risk to your business:

  • Employees or contractors traveling into another state where they are not based to solicit sales
  • Employees attending trade shows
  • Service technicians traveling into another state where they are not based to perform service calls
  • An affiliate or agent relationship that supports selling or servicing activities

Read more about sales tax nexus related to Affiliates, Direct Marketers, and VoIP Providers or download our questionnaire below.

Sales Tax Nexus