MENU

What is Sales Tax ‘Nexus’?

LinkedIn Twitter Facebook

 

Author: Chris O’Shea, Meridian Global Services

The imposition of sales tax is triggered by ‘Nexus’ (or physical presence) on the retail sale to the end-user or consumer.

Nexus ultimately determines if a seller is obliged to collect sales tax in a particular jurisdiction. For Nexus to occur, a substantial physical presence is required. Examples of physical presence are bricks and mortar such as an office, warehouse or store. Other examples are storing tangible personal property such as inventory, product or stock.

 

Although the definition of Nexus varies by state, employees, agents, sales people, independent contractors or other representatives are considered physical presence. In some states, an employee in that state for just one day constitutes Nexus. In others it can be two to three employees.

 

US Nexus Sales Tax Laws

 

Sellers, whether bricks and mortar or online must charge, collect and remit sales tax on all sales delivered into any state in which they have established Nexus. For all other states where sellers do not have physical presence or Nexus they do not need to charge sales tax. A sales tax registration number is the first step in the sales tax collection and remittance process. A seller cannot charge or collect tax without this number.

 

US Sales tax compliance is a time-sensitive function with state and local mandated filing requirements and deadlines. The tax needs to be reported and remitted to the proper state or local jurisdiction at the right time.

 

LinkedIn Twitter Facebook

What can UK online retailers learn from major sales events in China?

What can UK online retailers learn from major sales events in China?

By cleverly orchestrating a string of headline-grabbing shopping holidays throughout the year, China is reinventing retail. But why are Chinese consumers embracing these shopping frenzies so readily and offers and how can overseas retailers learn from this to gain and maintain the competitive edge?
How WeChat is used for Business

How WeChat is used for Business

WeChat has been a hot topic for many marketers for a long time. However, how much do we really know about the most used social network in China? And how is WeChat used for business?
Ecommerce in Australasia

Ecommerce in Australasia

The New Zealand and Australia cross-border eCommerce markets are booming and it is looking to continue this way for the coming years. With almost 17 million savvy and highly engaged online shoppers in the region, what do you need to know about these eCommerce markets and which are the most successful retail sites there?
Ecommerce shipping to Australia

Ecommerce shipping to Australia

It’s easy for any retailer to be attracted to the impressive digital adoption Australia has taken with online retail sales of USD $9.5 bn last year. However, this success is not without its challenges as shipping into this widely fragmented country can affect your business - but how?
Online retail in the Nordics: which payment options to offer

Online retail in the Nordics: which payment options to offer

People foreign to the Nordic region might not realise that the combined markets of Denmark, Norway, Sweden and Finland are in many ways leading the world in payments innovation. And through this, it is also apparent in its consumers’ progressive payment preferences when making online purchases. However, which payment option should online retailers offer when launching in these markets?
How can online retailers earn trust in Belgium?

How can online retailers earn trust in Belgium?

Belgium’s online presence is growing year after year and with a growing healthy appetite for cross-border purchases, what should online retailers take into account if they are to enter Belgium’s eCommerce market?
Delivery preference of Dutch and Belgian online shoppers

Delivery preference of Dutch and Belgian online shoppers

Dutch and Belgian consumers are increasingly buying their goods online, but they differ in how they want those goods delivered. A savvy online retailer needs to localise its delivery options to meet these local requirements. But what are these delivery preferences?
What can UK retailers learn from the Amazon model?

What can UK retailers learn from the Amazon model?

Amazon’s reach is so pervasive that it’s overtaking Google to become the search engine of shopping. And it’s just as attractive for retailers as it is for customers, allowing brands to offer their products to the biggest audience in eCommerce, and offering attractive and easy fulfilment options. But what can UK retailers learn from the successful Amazon model?
The fundamentals of retail: Which European countries are leading the way?

The fundamentals of retail: Which European countries are leading the way?

From delivering on promise, to quickly resolving contact centre queries, to minimising the amount of returns, there are myriad aspects for retailers to get right when it comes to delivering a great customer experience. But which European countries are most successfully delivering on the fundamentals of retail?
Beyond Black Friday: Unmissable international events for 2017 eCommerce plans

Beyond Black Friday: Unmissable international events for 2017 eCommerce plans

In the US, the day after Thanksgiving has been a key focus for US shopping. Now, Black Friday is becoming the unofficial start to the Christmas shopping season in countries across the world. But there are hundreds of other events across the world to be aware of when developing an international strategy. Here are a few...

Contact Us

eCommerce Worldwide
2 Ching Court
49-53 Monmouth St
London
WC2H 9EY

Tel: 0203 696 0980
2016© eCommerce Worldwide

Keep In Touch

powered by Affino

About eCommerce Worldwide

eCommerce Worldwide provides online retailers with all the information, and resources, they need to develop cross-border strategies for entering new markets around the world
Read More