How growing businesses keep up with economic nexus

Learn about resources to help manage expanding sales tax obligations

A changing landscape  

If you read our 2020 sales tax changes report, you know that economic nexus laws dominated the sales tax landscape in 2019. Many businesses have expressed concern about how they’ll keep up with these new laws, worrying they’ll be too time-consuming and expensive for their business to comply. Read on to see programs and resources that can help your business remain compliant.

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Understanding economic nexus

Economic nexus is a tax collection obligation imposed on companies based solely on a certain level of economic activity within a state. Unlike nexus that’s based on physical presence, economic nexus is based entirely on sales revenue, transaction volume, or a combination of both. Like many sales tax laws, economic nexus criteria vary by state and can be confusing. Review our state-by-state guide to economic nexus laws for specific information on every state with an economic nexus law.  


How to determine if economic nexus laws impact your business 

If you’re a current Avalara AvaTax customer, try out the economic nexus tracker within AvaTax to see if you’re approaching or might have exceeded an economic nexus threshold. We’ll compare the sales activity that flowed through AvaTax against each state’s unique sales or transaction thresholds and evaluation periods to alert you if you have a new obligation.

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Questions on this feature? View additional details in this help center article.

 


Worried about keeping up? Avalara is here to help.

 Let Avalara Licensing help you get registered in a snap 
Take advantage of the Streamlined Sales Tax Program to get covered in up to 25 states

The five steps to managing sales tax

Understanding the ins and outs of sales tax can be confusing. View the basic steps you need to consider to be compliant. 

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