Overview
Once you establish a sales tax nexus in a jurisdiction, you must register with that jurisdiction to collect and remit sales taxes. There are two ways nexus can be established in a jurisdiction:
- — Physical presence nexus means a seller has a physical presence in a jurisdiction sufficient for a state to impose a sales tax obligation. See Overview of physical nexus.
- — Economic nexus means a seller is deriving enough revenue and economic benefit from customers in a jurisdiction to warrant the jurisdiction imposing a sales tax obligation.
Anrok will show you where you are or economic nexus, which may be an excellent time to begin the registration process. In addition, regular check-ins with payroll are essential to know whether you have an employee in a new state that could require you to update your physical nexus information. See Monitor a jurisdiction's nexus status.