What is Economic Nexus? 

A sales tax nexus determined by economic activity, i.e. – the amount of sales you make in a particular state. 

Any kind of economic activity could trigger the nexus, once your total sales reach a certain amount.

Right now the only true way to monitor it is to use a tax service that is built into your e-commerce platform.

We have 2 coming out soon, Avalara and TaxJar.

Avalara

https://www.avalara.com/us/en/index.html

Can support rates, nexus, track your orders in each state, will auto determine when you have to collect tax in each entity, can even file your state returns for you.

TaxJar

https://www.taxjar.com

Can support rates, nexus, track your orders in each state, will auto determine when you have to collect tax in each entity, can even file your state returns for you.

Summary

  • Nexus is complicated! Don’t try to manage it yourself!
  • It’s only required if you hit certain thresholds
  • SAAS tools coming to make it easier and to manage it properly.