Technology companies frequently engage in sales tax nexus creating activities without realizing it. Many different activities can create "nexus", the link that establishes taxability between a seller and a jurisdiction. This paper details five ways that technology companies may inadvertently create nexus and how to avoid the issue. Topics include:
- Affiliate Nexus, "Amazon Laws", and Click-Through Nexus
- Traveling Sales Representatives
- Trade Shows
- Employees or Agents Performing Services
- Income Tax Nexus Does not Equal Sales Tax Nexus