Understand What Creates Sales Tax Nexus. Sales tax nexus is the basis for your sales tax compliance obligations. Without sales tax nexus, a state cannot subject you to their sales tax rules. Substantial physical presence is the standard by which sales tax nexus is determined from state to state. However, exactly what creates a substantial physical presence? There are obvious answers like an office or a warehouse in a state. However, there are more subtle scenarios like the following:
- Traveling Sales Reps
- Trade Shows
- Service Calls
- Click-Through Nexus
This questionnaire will provide you a guide as to the activities that are likely to create sales tax nexus for your business.