Sales Tax Nexus

Solve Your Sales Tax Nexus Challenges for Good

The recent Supreme Court decision “South Dakota v. Wayfair” redefined what constitutes economic nexus for your business. Nexus is no longer determined by your physical presence in a state. Your economic nexus obligations are now based on the sales revenue and transaction volume you generate in a given state, regardless of your physical presence there.

This ruling is a massive opportunity for states to generate revenue. And they’re taking full advantage in the form of aggressive enforcement.

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Economic Nexus State Updates

As of October 2019, only two states remain without economic nexus laws. This means your business has up to 48 different sales revenue and transaction volume thresholds to keep track of in case of an audit.

In November 2019, the state of California began sending out “thousands of notices” to third-party merchants on Amazon that have failed to meet their nexus obligations.

Could this be the beginning of a nation-wide trend?

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The Challenge

What to expect for the future

Nine more states (including Louisiana) have gone live with economic nexus laws since July 2019. Kansas currently has its economic nexus law (intended to take effect 10/1/2019) in dispute.

Full state-by-state sales tax nexus breakdown

Sales tax nexus by state

 

Streamlined, accurate filing in every jurisdiction

The Wayfair ruling forever changed the sales tax landscape for online retailers in the U.S., further complicating an already complex compliance environment. But that doesn’t mean your company is condemned to noncompliance.

Sales & Use Tax Filing

Sovos Sales & Use Tax Filing relieves the burden caused by new and varying sales tax nexus rules by automating your sales and use tax filing obligations. This gives you peace of mind knowing your filings will be on time and accurate, and you’ll have more time to focus on other critical tasks.

Sales & use tax filing

Schedule a demo to see how Sovos can solve your sales tax nexus filing challenges for good.
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