- It seems that no matter what type economic environment we are in, the States are forever searching to find ways to close their budget gaps. One of the solutions they have come up with is to expand their definitions of nexus, thereby subjecting out-of-state merchants to more requirements for their sales tax collection.
- Some States have expanded the definition of nexus to include sales made when you travel to trade shows. To them, this means you have an order taking representative which constitutes a physical presence.
- Having a booth at a physical trade show may require you to register and pay sales tax in the State where the show is held, even though you may not otherwise have nexus in that State.
- To determine whether or not you are subject to sales tax collection rules, you can find some great resources from the tax experts at Avalara.
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In particular, they have an articles on When Trade Shows Give You Sales Tax Liabilities
and Internet Sales Tax.
To possibly limit your physical trade show nexus trap join XpoCentral.
