What is economic nexus?
The South Dakota v. Wayfair Supreme Court ruling marked a drastic shift in tax law precedent and established a new definition of nexus. Before Wayfair, nexus depended on a company’s “physical presence” in the state. But in a post-Wayfair world, if your business sells goods in any state — even if you don’t have a physical presence in that state and the transaction is online only — you may be obligated to register in that state and collect sales tax if you exceed the “economic nexus” threshold.
To dig deeper, visit the original article on the Thomson Reuters blog.