Knowledge Center Economic Nexus

Economic Nexus

Economic nexus laws allow states to establish sales tax obligations for remote sellers if certain revenue, transaction volume or other combination of factors are met. Even though your business might not have a physical presence established in a particular state, you might now be required to comply with local state tax laws and collect sales tax from buyers.

As each state is free to set their own standards, the requirements for businesses to properly document exempt sales with specific tax exemption certificates is also growing.

In this whitepaper we provide additional state level information on the applicability of economic nexus laws, as well as information and tips on how to navigate the challenges posed by these laws when it comes to handling resale and tax exemption certificates.