Start with Nexus and Achieve Sales Tax Compliance Excellence
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Physical vs economic nexus
Pinpointing nexus: Where to start
When it comes to sales tax compliance, we always say, “Start with Nexus”. In fact, Andy Johnson, one of our founding partners, wrote a best-selling book on the subject. Nexus is the connection or presence that a business establishes in a particular jurisdiction, triggering its responsibility to collect and remit sales tax.
Physical nexus
Physical nexus refers to the traditional concept of establishing a physical presence in a jurisdiction. This presence can take various forms, and each jurisdiction defines physical nexus differently.
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Economic nexus
In recent years, economic nexus has emerged as a game-changer in sales tax compliance. Economic nexus is triggered based on a business's economic activity within a jurisdiction, even without a physical presence.
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Nexus footprint
Two sides of the same coin
Both physical and economic nexus work together to fabricate your nexus footprint, shaping your sales tax compliance obligations. Our team of experienced accountants and consultants specializes in pinpointing nexus for businesses across various industries. We analyze your operations, sales channels, and other relevant factors to identify both physical and economic nexus in the jurisdictions where you conduct business. With our in-depth knowledge of state laws and regulations, we guide you through the complexities and ensure you have a comprehensive understanding of your nexus obligations.
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Customized solutions
Comprehensive nexus & taxability strategies
Every business is unique, and a one-size-fits-all approach doesn't suffice when it comes to achieving optimal compliance for nexus and taxability. That's why we provide customized solutions tailored to your specific needs.
“Having used them for several years, I can confidently say Peisner Johnson does it all, and at the right price.”
— Nate Heward
CFO, Acima
“Thank you! Without you guys, I’d be crying in my closet!”
— Marie Pedersen
CFO, Sports Research Corp
“Their vast knowledge makes navigating the complex world of sales tax a much simpler task”
— Thomas Marquart
Owner, Dad Brand
Physical Nexus, Continued
Physical nexus refers to the establishment of a tangible presence in a jurisdiction, which triggers sales tax obligations. It can be determined through factors such as having an office, store, employees, contractors, or inventory within the jurisdiction. Some states set sales thresholds, employee presence, property ownership/leasing, or participation in events as indicators of physical nexus. Understanding the specific rules and requirements of each jurisdiction is crucial for accurately assessing physical nexus and ensuring compliance. Partnering with sales tax professionals like Peisner Johnson can provide expert guidance in analyzing and managing physical nexus obligations.
Economic Nexus, Continued
Economic nexus refers to the establishment of a sales tax obligation based on a business's economic activity within a jurisdiction, regardless of a physical presence. It is determined by factors such as sales revenue, transaction volume, or the number of transactions conducted in a specific jurisdiction. Many states have implemented economic nexus thresholds, which businesses must exceed to trigger the obligation. These thresholds vary between states and can be based on either a certain amount of sales revenue or a specific number of transactions. Understanding and monitoring the economic nexus requirements in each jurisdiction where you operate is crucial to ensure compliance with sales tax regulations.
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