Navigating Sales Tax Compliance: Understanding Nexus, Taxability, and Situsing Complexities

• Sales tax compliance is complex and involves various complications
• Nexus can be physical or economic, with thresholds varying among states
• Some states have unique tax jurisdictions, such as NOMAD states and “home rule” localities
• Taxability of products or services depends on nexus in a tax jurisdiction
• States require sales tax on tangible personal property or specified services
• Technology products/services and telecom are areas with potential taxability issues
• Situs determines taxability and sales tax rate, with most states following destination-based sourcing rules
• Origin-based states have different rules for collecting and remitting sales tax
• Shipping terms and benefit of use can complicate situs determination, especially in SaaS sales.

Source: taxconnex.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

---

---