How it works
Nexus can come from physical presence, such as an office, employees or inventory in a warehouse, or from economic activity. Since the 2018 Wayfair decision, most US states set economic nexus thresholds based on sales into the state, commonly $100,000 a year, sometimes alongside a transaction count. Thresholds, measurement periods and marketplace facilitator rules vary by state.
Example
An online brand stores inventory in a 3PL warehouse in Pennsylvania and sells $140,000 a year into Texas. It likely has physical nexus in Pennsylvania and economic nexus in Texas, and should confirm with a tax adviser.
In integrations
Nexus tracking needs every sale from every channel with a ship-to address. The sales tax automation solution on Unify Int collects orders, invoices, refunds and addresses from storefronts and ledgers in one schema, ready for a tax engine. Unify Int does not calculate or file tax. Nexus thresholds are measured on gross or retail sales across all channels, including marketplaces. Missing one channel can mean collecting too late, which creates liability the business pays itself.