If you’re a company outside of the United States and you look to start selling into America, congratulations – the U.S. offers you a huge new market. It also offers complex sales tax obligations you may not know about.

Last time, we looked at trailing nexus and a few reasons you might want to cancel your sales tax registration with a state.

You know all about reaching sales tax nexus: selling enough or having a physical presence in a tax jurisdiction sufficient to create a connection with that jurisdiction and create an obligation for you to collect and remit sales tax.

A state has not added a statewide sales tax since Richard Nixon was in the White House. Vermont was the last to due so in 1969. There are five remaining states with no state level sales tax: New Hampshire, Oregon, Montana, Alaska and Delaware – often referred to as the NOMAD states.

When your customers shop with you online, they provide a physical billing or shipping address. Whether they know it or not, they also give you another bit of location information: an Internet Protocol (IP) address.

The United States has possibly the world’s most complex sales tax regime. This is because each state sets its own sales tax rules, and states often take widely varying approaches. As a result, each state has a different tax framework, with varying rules around everything from tax liability and tax rates to exemption categories and reporting requirements. On top of this, some local area tax jurisdictions also have powers over some aspects of taxation and can set different rules for their area.

There’s always something changing in the world of tax, especially sales tax. Here’s a review of some of the recent changes and updates so far this year.

Many manufacturers, wholesalers, and distributors believe they have minimal sales tax obligations due to the likelihood of sales tax-exempt transactions. However, there are numerous pitfalls to be aware of.

So far this year, multiple states have introduced new exemptions including some on necessities and at least one proposed tax credit on a politically charged kitchen appliance.

At least three states opened this year with proposals to revamp taxes concerning digital advertising and data.

Online retailers and eCommerce companies have been the focal point of taxing jurisdictions and their updated nexus laws for years.

Our third annual survey of financial professionals revealed a sales tax storm in many industries. Financial leaders continue to lean on internal resources while wrestling with the current economy, inflation and a tight job market.

Retail/eCommerce respondents to our survey reported challenges such as audits, timely filing of sales tax returns and charging the correct sales tax.

“Services” are generally not subject to sales tax while tangible personal property generally is subject to sales tax. This over simplification can get you sideways in various states as there are lots of exceptions to these general rules. Kentucky is the latest in terms of taxing specific services.

States aren’t the only ones who can complicate your life with sales tax: Local governments want to play their part, too. Cities, counties and towns nationwide – which have almost all seen an increase in their sales tax revenues in recent years – constantly tinker with their own sales taxes. The states and local jurisdictions have been the beneficiary of economic nexus over the past four years.

Two recent state courts’ determinations – one good for the seller, one not – show the continuing reach of Wayfair almost five years after the landmark Supreme Court decision regarding economic nexus.

Studies show that some 1.4 million people in the Commonwealth of Puerto Rico (more than a third of population) do their shopping online, with annual online purchases in the U.S. territory now at $458 million. The size of the average online transaction in Puerto Rico has almost tripled in the past six years.

It’s a fair bet, then, that sooner or later you’re going to be selling online into Puerto Rico, which has a sales tax. Every U.S. state with a sales tax has economic nexus thresholds – does Puerto Rico?

Next summer will mark five years since the Supreme Court ignited economic sales tax nexus with the South Dakota v. Wayfair, Inc et aldecision. Many businesses are still trying to figure out how to manage the resulting obligations, but one thing’s clear:

Now every state with a sales tax has economic nexus.