This free sales tax risk assessment tells you where your business may have an obligation to collect and remit sales tax, or nexus.
This tool assesses economic nexus only. To learn more about other ways you can create a sales tax collection obligation, visit our seller’s guide to nexus laws and sales tax collection requirements.
If you make sales into states where you don’t collect sales tax, you’re at risk of being out of compliance.
Most states now require out-of-state sellers with a certain amount of sales in the state to register to collect and remit sales tax. This is economic nexus.
1) A customized PDF featuring a list of states where you likely have economic nexus, along with details about each state’s economic nexus threshold
2) A free consultation to help you understand your company’s potential economic nexus risk in each state, and steps you can take to improve compliance
What you need to do
Think about states where you make sales. The assessment will ask you to answer three questions:
Where do you currently collect and remit sales tax?
Where do you make sales but not collect sales tax?
Roughly how much do you sell in states where you don’t collect (dollar amount and number of transactions)?
It’s best to have 12 months of data, but you can complete the assessment with less.
After taking the assessment, you’ll know where you likely have economic nexus and an obligation to register to collect and remit sales tax.
Staying compliant in multiple states is hard, especially since sales tax rates and rules change frequently.
Automating sales tax calculation, collection, and remittance is the best way to improve sales tax compliance.
The 2018 U.S. Supreme Court ruling in South Dakota v. Wayfair, Inc. changed the way states can tax remote sales.
Sellers can now be required to collect sales tax in states where they don’t have a physical presence.