Frequently Asked Questions

Sales Tax Nexus

If you meet one of the two, you have nexus in the state. You do not have to meet both to have nexus. Just one.

 

If you have a physical presence in a state (e.g., store, employee, inventory), you have physical nexus. Typically, if you exceed $100,000 in sales or 200 individual orders over a year in a state, you may have met the state’s economic nexus threshold, but state thresholds vary.

It depends on the state.

 

Some states require sellers to register as soon as they cross an economic nexus threshold and to start collecting tax on the very next transactions, as is the case in Florida.

 

However, other states, like Kentucky provide sellers with 60 days after crossing its sales or transaction economic nexus threshold.

If you have achieved physical or economic nexus within a state, then yes, you are liable to file & remit sales tax in that state. Check out our US Sales Tax Guide for Non-US Based Retailers for more information.

 

It is important to note that state tax laws are different from federal income tax laws. Stay proactive by contacting us for a free nexus assessment to mitigate any exposure.

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