What is nexus and why does it matter?
Determine which type of nexus you’ve triggered
Content, Data, and Insights
Avalara Sales Tax Risk Assessment
Get your assessment to know when and where you need to register your business
WHAT IS IT?
Easily determine your state tax obligations with the Avalara Sales Tax Risk Assessment
Understanding state nexus laws and knowing where to register can be complicated and risky to do on your own. The Avalara Sales Tax Risk Assessment helps you identify where you’ve triggered physical and economic nexus so you can meet your U.S. sales tax obligations.
WHY DO I NEED IT?
Keep up with constantly changing tax laws
Sales tax compliance is complex. Ever-changing state tax laws present a challenge for businesses of all sizes: staying compliant.
Meeting your tax obligations is a requirement that only gets more difficult as your business evolves.
What is economic nexus
Economic nexus is a connection to a state that is based entirely on sales volume into the state and creates an obligation to register and remit sales tax to that state.
Obligations can be triggered by having as little as $100,000 worth of sales in a state or making 200 individual transactions. These criteria are also called nexus thresholds. Thresholds vary by state and the requirements can be difficult to navigate.
What is physical nexus?
Physical presence in a state creates an obligation to register and remit sales tax to that state. Physical presence can include everything from having a retail storefront to renting or owning property, employing remote workers, and even storing property in a fulfillment center or a location owned by someone else.
Physical presence is one of the first things state tax auditors look for during an audit when determining whether you have a tax obligation.
Explore nexus and sales tax resources
Sales tax laws by state
There are many ways to establish sales tax nexus. No two states have the exact same requirements. Get your state-by-state breakdown.
Nexus resource guide
Nexus determines where you have tax obligations. Discover what influences your unique nexus footprint.
See the insights
The biggest changes, succinctly in one place. Including 100+ visuals that tell the story. Avalara Tax Changes 2024.
