Articles explaining sales tax rules, economic nexus, reporting responsibilities, and compliance topics that affect businesses collecting and remitting sales tax across different states.
eBay may collect and remit sales tax on a seller’s marketplace transactions when the destination jurisdiction requires a qualifying marketplace facilitator to do so. In those transactions, the marketplace generally handles the buyer-facing collection obligation. That does not automatically eliminate every sales-tax…
Yes, selling at a craft fair can create sales tax obligations. Attending an event in person may be treated differently from making sales remotely into the same state. Depending on the state, a vendor may need to register before the event, collect…
Affiliate marketing can create sales tax nexus when a state treats an in-state referral relationship as a sufficient connection between an out-of-state seller and that state. The result depends on the state’s law, the affiliate’s location and activities, how the affiliate is…
No—sales tax nexus usually does not disappear the moment your sales fall below a state’s economic threshold. A state may measure sales over the current year, a prior year, a rolling period, or several tax quarters. It may also require collection to…
A sales tax nexus obligation begins when a business has the connection a state treats as sufficient and the state’s rules require that business to register, collect tax, or take another specified action. Those moments are not necessarily identical. Physical activity may…
Click-through nexus is a state sales-tax nexus rule that can apply when an out-of-state seller compensates a resident publisher, affiliate, or representative for referring customers. A tracked website link is a common example, but the analysis is not necessarily limited to internet…
Advertising in a state does not automatically create sales tax nexus under one nationwide rule. The result depends on how the business advertises, whether people or organizations in the state participate in solicitation, whether the seller has other in-state contacts, and whether…
Yes, a remote employee can create sales tax nexus, but the answer depends on the state and the employee’s activities. Some states treat an employee working within their borders as physical presence. Other state guidance focuses more specifically on whether the employee…
Can a Trade Show Create Sales Tax Nexus? Yes. Attending, exhibiting at, taking orders at, or making sales at a trade show can create sales tax obligations for an out-of-state seller. The result depends on the law of the state where the…
Yes, storing inventory in a warehouse can create sales tax nexus. Inventory gives a business a physical connection to a state, and some states expressly require sellers using an in-state warehouse or storage location to register. However, the result is not automatic…