FREE WEBINAR
So You Think You Don’t Owe Sales Tax?
May 14, 2014
1:00pm EST / 10:00am PST
REGISTER NOW


Do you know what NEXUS is?
Do you know impact it has on your business?
If the answer is no, you could be in for a world of trouble if you get audited.

Simply put, nexus means “a connection.”
It’s the connection you have with where you do business. More specifically, it’s what triggers the obligation to pay transactional tax in a given jurisdiction. And just like so many other business issues, nexus is not simple. There’s a whole host of ways nexus can be triggered, some obvious and some you’d never guess. These rules vary from state to state.

Almost every business is required to calculate, collect, report and remit some kind of transactional tax, whether it be sales tax, or seller’s use tax or maintaining exemption certificates to prove you don’t owe sales tax for a given transaction.

You’re most likely already paying taxes in your state and local jurisdictions as a result of business location. But what happens when you sell into another state? Do you have to collect sales tax? How much? Who do you remit to?

Each state determines their own unique nexus rules and determining exactly how those rules apply to a business is critical. Once you have determined where Nexus exists for your business, you are required to calculate, collect, report and remit that state’s sales tax each and every time you make a transaction. Making the nexus determination on your own is difficult, confusing and can lead to problems further down the road.

 

Avalara Nexus Sales Tax Compliance Problem Webinar

 

You already know that you have to remit sales tax where your business is actually located (because the fact that you’re there gives you nexus). But there are several reasons why nexus would be triggered outside of your physical location:

  • The business has stores in multiple states or has employees who work in other states. In this case, you will more than likely have sales tax obligations in each location.
     
  • You sell online. Many states have already passed online sales tax legislation, which requires you to collect sales tax if you do business in that state.
     
  • You do business in California.  California has some of the most complex nexus laws in the states. For example, if you advertise on a website through an affiliate type program and that website is hosted in California, you have nexus in California. Keep in mind this doesn’t address the taxability of what you sell, but rather the state’s requirement that you collect sales tax.

These are only 3 of MANY scenarios nexus might be triggered for your business. And the truth is, that’s just barely touching the tip of the iceberg when it comes to sales tax compliance. Outside of nexus there’s a myriad of other reasons why you still have transactional tax obligations, even if you don’t owe sales tax.
 

So what’s the first step in achieving compliance?

Try this quick and easy Nexus Wizard and after answering 10 easy questions, you'll receive a report highlighting where you might have nexus obligations.

Next - join Avalara, trusted tax partner of Klear Systems, for a live webinar on Wednesday, May 14th 2014.  They will cover tax obligations, what you didn’t know, and what you might think you owe.

JOIN US!
So You Think You Don’t Owe Sales Tax?
May 14, 2014
1:00pm EST / 10:00am PST
REGISTER NOW

Kimberly Tucker

Written by Kimberly Tucker