Economic nexus started in 2018, do you know what it is?

What is economic nexus?

Economic nexus is a connection between a state and a business that allows the state to require the business to register to collect and remit sales tax. It’s established when a business reaches a certain threshold of sales revenue and/or number of transactions in the state.

Who does economic nexus affect?

Economic nexus impacts businesses with no physical presence in a state (also known as remote sellers) that sell goods and services in the state and meet or exceed the state’s economic nexus threshold.

Economic nexus for sales tax is triggered by reaching a certain amount of sales (e.g., $100,000) and/or a number of sales transactions (e.g., 200 transactions) in another state.

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