Sales tax nexus
A state where you have enough presence or sales that you must collect its sales tax. Set your nexus states and rates apply automatically.
In Solo Superstars
List nexus states in the tax profile. Invoices to customers in those states get that state’s rate; other states get none. Tax Watch warns if you collect tax for a state you have not set up.
Example
Nexus CA and NY: a NY customer’s invoice gets NY tax; a TX customer’s invoice gets no tax.
Codes shown are the defaults a new workspace starts with. Yours may be renamed or renumbered — check Accounting › Chart of accounts. See the full default chart.
Also called
- nexus
- economic nexus
Related
- Sales tax — Tax you collect from customers on behalf of a state and pass on. It is never your revenue; it sits as a liability until remitted.
- Tax profile — Your entity type, accounting method, home state, fiscal year and nexus states. Most tax behavior in the app keys off it.
- Tax rate — The percentage applied to taxable lines for a given state. New workspaces start with a state-level rate for every US state.
- Home state — The state your business is based in. Drives your default sales-tax rate and which state forms the tax calendar shows.