{"id":988543,"date":"2025-08-26T11:40:36","date_gmt":"2025-08-26T11:40:36","guid":{"rendered":"https:\/\/www.taxdesk.com\/uncategorized\/understanding-economic-nexus-what-remote-sellers-need-to-know\/"},"modified":"2026-02-25T13:25:54","modified_gmt":"2026-02-25T13:25:54","slug":"understanding-economic-nexus-what-remote-sellers-need-to-know","status":"publish","type":"post","link":"https:\/\/www.taxdesk.com\/it\/understanding-economic-nexus-what-remote-sellers-need-to-know\/","title":{"rendered":"Understanding Economic Nexus \u2014 What remote sellers need to know"},"content":{"rendered":"<div class=\"vgblk-rw-wrapper limit-wrapper\"><span data-contrast=\"auto\">If you sell across different US States, particularly online, then you will probably be aware of <\/span><i><span data-contrast=\"auto\">economic nexus<\/span><\/i><span data-contrast=\"auto\">.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">As a CEO or CFO this has an impact on your business; having an economic nexus means you need to register for, collect and remit sales tax in a State even if your business doesn\u2019t have a physical presence there.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The criteria are based on how much you sell. Once sales in a State exceed a certain revenue or transaction threshold, the company has an economic nexus in that State, even if there aren\u2019t any physical offices, warehouses or employees.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">This concept gained national prominence following the 2018 U.S. Supreme Court decision in<\/span><i><span data-contrast=\"auto\"> South Dakota v Wayfair<\/span><\/i><span data-contrast=\"auto\">.\u00a0\u00a0 In that case, the Court ruled that individual States may compel out-of-state sellers to comply with local sales tax laws, effectively overturning the previous physical presence standard. As a result, businesses engaging in remote or online sales must now closely monitor their economic activity in each state to determine where tax compliance obligations may arise.<\/span><span data-ccp-props=\"{&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<p aria-level=\"1\"><b><span data-contrast=\"none\">Consider the complications<\/span><\/b><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:281,&quot;335559739&quot;:281}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">While the concept of economic nexus is relatively straightforward, its practical application can be complex, primarily because each State applies its own rules and standards.<\/span><span data-ccp-props=\"{&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Navigating compliance in different US States becomes particularly challenging:<\/span><span data-ccp-props=\"{&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"5\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Different thresholds across States<\/span><\/b><br \/>\n<span data-contrast=\"auto\">Some States consider only total sales volume when determining economic nexus; for example, California sets the threshold at $500,000 in annual sales. Others, such as Illinois, apply a dual test where the economic nexus is triggered by either $100,000 in sales or 200 separate transactions within the State.<\/span><span data-ccp-props=\"{&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"5\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Frequent changes to the rules<\/span><\/b><br \/>\n<span data-contrast=\"auto\">Economic nexus regulations are not static. Thresholds, filing requirements and even the definitions of taxable activity can change from time to time; this requires CFOs to stay informed.\u00a0<\/span><span data-ccp-props=\"{&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"5\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"3\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Not all definitions are the same<\/span><\/b><br \/>\n<span data-contrast=\"auto\">States have different rules in how they measure sales for nexus purposes. Some States include exempt sales or sales made through third-party marketplaces (like Amazon), while others exclude them from the calculations. States also differ in defining the period in which the threshold is measured, for example, the last calendar year, the current calendar year or the proceeding 12 months.\u00a0<\/span><span data-ccp-props=\"{&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"5\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"4\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Taxable items vary by State<\/span><\/b><br \/>\n<span data-contrast=\"auto\">There is no uniformity in what States consider taxable sales. Services, digital products, or groceries may be subject to sales tax in one State and completely exempt in another.<\/span><span data-ccp-props=\"{&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<p aria-level=\"3\"><b><span data-contrast=\"none\">The impact of Nexus on your growth<\/span><\/b><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:281,&quot;335559739&quot;:281}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">If you&#8217;re growing rapidly, selling across multiple states or using multiple sales channels such as Amazon or Shopify, you may already have sales tax obligations in States where you have no physical presence.\u00a0<\/span><span data-ccp-props=\"{&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Given that every State has its own rules, keeping track of where and when you have triggered an economic nexus can quickly become overwhelming.<\/span><span data-ccp-props=\"{&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<p aria-level=\"1\"><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<p aria-level=\"1\"><b><span data-contrast=\"none\">Calculate your tax exposure with a Nexus checker<\/span><\/b><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">In response to the growing number of businesses, particularly remote sellers, who need to navigate US sales tax compliance, Tax Desk has created a Nexus checker tool.<\/span><span data-ccp-props=\"{&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The Nexus checker helps CFOs and CEOs to easily:<\/span><span data-ccp-props=\"{&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Understand the up-to-date economic nexus threshold (sales value and\/or transaction volume) by State<\/span><span data-ccp-props=\"{&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Have a clear view on whether you are approaching or have exceeded the thresholds in each State based on your sales data<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">Give practical guidance on where and when you need to register and what to do next<\/span><span data-ccp-props=\"{&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"auto\">In essence, it is everything you need to assess your compliance status in the US.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p aria-level=\"1\"><b><span data-contrast=\"none\">Speak to an expert<\/span><\/b><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:480,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">If you are unsure about your obligations or how to proceed after identifying nexus, then our team of tax professionals is ready to support you. We offer comprehensive services, including:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Advising and monitoring economic nexus exposure across all US States<\/span><span data-ccp-props=\"{&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Registering in States where thresholds are exceeded<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">Handle ongoing sales tax filings and ensuring full sales tax compliance across all US jurisdictions<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"auto\">Contact our team of experts today for tailored assistance and peace of mind.<\/span><\/p>\n<p><strong> Download our latest guides : <a href=\"https:\/\/taxdesk.com\/wp-content\/uploads\/2025\/08\/Nexus-checker-Brochure-1.pdf\" target=\"_blank\" rel=\"noopener\">Nexus checker <\/a><\/strong><\/div>\n<p><!-- .vgblk-rw-wrapper --><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you sell across different US States, particularly online, then you will probably be aware of economic nexus.\u00a0\u00a0 As a&#8230;<\/p>","protected":false},"author":1,"featured_media":989514,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[57,58,64],"media-type":[52],"services":[65],"solutions-for":[59],"class_list":["post-988543","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-blog","tag-e-commerce","tag-us-sales-tax","media-type-blog","services-us-sales-tax","solutions-for-e-commerce"],"_links":{"self":[{"href":"https:\/\/www.taxdesk.com\/it\/wp-json\/wp\/v2\/posts\/988543","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxdesk.com\/it\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxdesk.com\/it\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxdesk.com\/it\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxdesk.com\/it\/wp-json\/wp\/v2\/comments?post=988543"}],"version-history":[{"count":1,"href":"https:\/\/www.taxdesk.com\/it\/wp-json\/wp\/v2\/posts\/988543\/revisions"}],"predecessor-version":[{"id":989222,"href":"https:\/\/www.taxdesk.com\/it\/wp-json\/wp\/v2\/posts\/988543\/revisions\/989222"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.taxdesk.com\/it\/wp-json\/wp\/v2\/media\/989514"}],"wp:attachment":[{"href":"https:\/\/www.taxdesk.com\/it\/wp-json\/wp\/v2\/media?parent=988543"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxdesk.com\/it\/wp-json\/wp\/v2\/categories?post=988543"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxdesk.com\/it\/wp-json\/wp\/v2\/tags?post=988543"},{"taxonomy":"media-type","embeddable":true,"href":"https:\/\/www.taxdesk.com\/it\/wp-json\/wp\/v2\/media-type?post=988543"},{"taxonomy":"services","embeddable":true,"href":"https:\/\/www.taxdesk.com\/it\/wp-json\/wp\/v2\/services?post=988543"},{"taxonomy":"solutions-for","embeddable":true,"href":"https:\/\/www.taxdesk.com\/it\/wp-json\/wp\/v2\/solutions-for?post=988543"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}