A connection to a US state strong enough to create an obligation to collect its sales tax. It comes from physical presence, inventory, employees, trade shows — or from sales volume alone.
A connection to a US state strong enough to create an obligation to collect its sales tax. It comes from physical presence, inventory, employees, trade shows — or from sales volume alone.
Economic nexus starts the DAY you cross the threshold, not at year end and not when you notice. Everything sold in between is tax you owed and did not collect, and it comes out of your margin because the customer is long gone.
Every term here is one the protocol actually uses, defined for somebody who was never taught it — with the part that usually goes wrong. All terms →