How Can I Manage Sales Tax Nexus Requirements?
The scope of nexus-creating activities has expanded. If left unaddressed, the exposure is costly to growing businesses expanding their footprint across multiple states. Monitoring your nexus by state and meeting your sales tax obligations is imperative to your company’s financial stability. Our tax professionals will determine which states to register, collect, and report for nexus through our sales tax registration process.
What Is Sales Tax Nexus?
Sales tax nexus is a physical or economic connection that a taxpayer creates with a taxing jurisdiction that requires the taxpayer to remit sales tax to the jurisdiction when taxable transactions occur.
Cherry Bekaert offers a full range of services to identify your nexus footprint and address your sales tax obligations.
What Is Economic Nexus?
States now collect sales tax on taxable transactions from out-of-state sellers with no physical presence in the states if they have created an economic presence. This economic nexus is established when remote sellers meet each state’s thresholds for the number of transactions in the state and/or sales into the state.
Nexus requirements differ by state. Keeping up with changing laws across multiple jurisdictions can be incredibly burdensome. Then comes the need to navigate each state’s unique registration process and sales tax compliance obligations.
How Can I Meet My Sales Tax Registration Requirements?
Sales tax registration requirements are complicated and time-consuming. Cherry Bekaert offers services to navigate the registration process for any taxing jurisdiction to make sure you are meeting our sales tax obligations and minimizing sales tax liabilities.
Who Should Register for Sales Tax?
If your business establishes sales tax nexus in a specific state, and you are selling a taxable product or service, you must register with that state and then collect, report, and pay sales taxes on applicable products and services. Each state has different requirements for establishing sales tax nexus, and those requirements change frequently.
Additionally, be sure to address historical sales tax return filing issues before completing your registration.
Each state has a unique registration process and sales tax compliance obligations. To minimize sales tax exposure issues, understand the jurisdiction’s registration process, timeline, and requirements.
