Determining a company's tax profile - nexus, exemptions and taxability
VIDEO: What’s My Tax Profile?
Before using the AvaTax API, there are a few basic sales tax principles you need to understand. First and foremost is your organization’s tax profile, which is comprised of three key components:
- Where your organization is required to collect sales tax, a principle known as nexus
- The customers your organization exempts from sales tax
- The specific tax rates for the products and services your organization sells
Watch the short video above to get a quick, basic understanding of how your organization’s tax profile is determined.